Walmart is selling online women’s apparel business ModCloth, which it acquired in March 2017, to Go Global Retail. A Walmart spokesperson declined to comment on the terms of the deal. Press release said Go Global Retail will invest primarily in building out ModCloth’s website, as ModCloth operates as a freestanding and independent fashion brand. Go Global Retail, founded in 2011, is a brand investment platform that has worked with other apparel companies including VF corp., Guess and Billabong, according to its website.
Susan Gregg Koger started ModCloth in 2002 as an independent, online fashion retailer. It was known for casting real people as models and being one of the first clothing brands to take the No-Photoshop pledge.
For Walmart, the deal was part of a larger strategy to ramp up its e-commerce business in an effort to compete with Amazon. “When we acquired ModCloth, our primary focus was to build assortment through proprietary, digitally-native brands,” a Walmart spokesperson told The Verge. “Our approach has evolved and our current focus is on building direct to consumer brands that we can leverage in an omni way. Similar to online grocery, we are putting our investments in areas where our omni capabilities and unique advantages put us in a position to win.”
The boutique service lets customers shop via text message and have their items delivered within hours — but it was losing lots of money. “As of early this summer, Jetblack was losing around $15,000 per member annually,” The Wall Street Journal wrote. For ModCloth loyalists who jumped ship in 2017, it might finally be time to come back. While Feuer plans to grow the brand in the US and abroad, he wants it to stay true to its roots. “We’re all focused on ModCloth being a specialty retailer with a specific orientation towards women’s fashion,” he said.