Walmart to sell indie womenswear brand ModCloth to Go Global
New York-based brand investment platform Go Global Retail announced on Friday that it plans to acquire digitally native womenswear retailer ModCloth from Walmart, which acquired the brand in 2017.
Once acquired by Go Global, ModCloth will operate as a freestanding, independent fashion brand and will continue to function in accordance with its current operational set-up.
Go Global’s plans for the brand include investing in its digital capabilities, including artificial intelligence and predictive analytics, while also continuing to focus on ModCloth’s core customer base of women aged 18 to 35.
Founded in 2002, ModCloth specializes in indie and vintage-inspired womenswear in sizes XXS to 4X, as well as shoes, handbags and accessories. The brand’s philosophy revolves around female empowerment and inclusivity.
“We believe that together with current management, ModCloth has the ability to become a stronger player in the premium fashion market, nationally as well as internationally,” commented Go Global Co-Managing Director Jeff Streader in a release.
“Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain and operations,” added Co-Managing Director Christian Feuer.
Walmart first acquired ModCloth two years ago as part of a wider online growth strategy which also saw the retail conglomerate purchase e-commerce-driven menswear brand Bonobos, having already bought Jet.com in 2016.
According to CNBC, Marc Lore – president and CEO of Walmart e-commerce in the U.S. – has stated that the sale of ModCloth is part of a shift in focus for Walmart, which is looking to dedicate more of its attention to incubating its own brands for the time being.
Last month reports also surfaced that Walmart had been approached by parties interested in its JetBlack text-to-order business.
The terms of Walmart’s deal with Go Global have not been revealed. The companies expect the acquisition to close later this year.
Copyright © 2022 FashionNetwork.com All rights reserved.