Walmart flogs off ModCloth as omni approach evolves

Walmart is selling online retailer ModCloth, just two years after acquiring it. The brand will now be a part of investment firm Go Global Retail and continue to operate independently.

The Walmart deal wasn’t popular in some circles. “The thing I loved about ModCloth is that I knew the clothes I bought there couldn’t be found at Macy’s and weren’t worn by the masses,” Connie Warner told The Los Angeles Times. Warner, who started a Boycott ModCloth Facebook page, added: “No more. I’ve unsubscribed from their emails. I refuse to shop at a store owned by Walmart.”

For the latter, the deal was part of its efforts to ramp up its e-commerce business and take the fight to 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.”

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