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    WAL-MART Sells Women's Clothing Business Modcloth To Make Up For Its E-Commerce Business Losses

    2019/8/8 11:58:00 194

    WAL-MARTModcloth

    In the past few years, WAL-MART, the world's largest supermarket, has been developing the e-commerce business madly and has launched fierce competition for Amazon. WAL-MART has also acquired a large number of e-commerce platforms in the field of subdivision to expand the online retail product line. But now, in the face of the huge loss of online retail business, WAL-MART has taken a comprehensive adjustment.

    According to the latest news from foreign media, Wal-Mart Store Inc is seeking to sell ModCloth, a women's clothing retail website that was acquired two years ago, to make up for the loss of its e-commerce business.

    Silvia Mazzucchelli, chief executive of the retail market, said to Glossy: "I can confirm that WAL-MART has received interest in the acquisition of ModCloth by the outside world." We are considering possible opportunities. "

    A US technology media reported for the first time last month that WAL-MART is considering the transfer of the women's retail website.

    The Wal-Mart Store Inc representatives did not immediately respond to requests for comment on the transfer.

    As the largest retailer in the world, Wal-Mart Store Inc acquired ModCloth in March 2017, bringing some much-needed vitality to the company's old-fashioned clothing business. Over the years, the clothing retail business of the company has been limited to basic commodities such as T-shirts and underwear. Subsequently, the company acquired other online apparel retailers such as Bonobos and Eloquii, and cooperated to sell Lord Taylor clothing products on WAL-MART website.

    According to foreign media reports, the ModCloth website was founded in 2002 by Susan Coorg and Eric Coorg. It was originally a high quality clothing seller selling Susan's handpicked objects. The company grew into a $150 million retailer, known for its bizarre costumes and weird costumes designed for retro girls. But in 2014, the company was hobbled by two rounds of layoffs due to weak sales growth.

    Subsequently, the two founders stepped aside and hired Matt Kaness, a retail veteran, to help ModCloth enter the mainstream. To attract a wider range of female consumers, the brand has reduced some of its exotic products and started opening offline stores.

    ModCloth has been out of step with WAL-MART's conservative culture, and its top management has been constantly changing. Ma Zuqing worked in American Apparel, the third chief executive of the brand over the years.

    According to foreign media reports, ModCloth plans to open more physical stores have been postponed.

    According to Morgan Stanley, the US investment bank estimates that WAL-MART's e-commerce expansion is at the expense of profits. WAL-MART's US e-commerce business losses this year could rise from about $1 billion 400 million in 2018 to about $1 billion 700 million. In recent weeks, the company has incorporated its Jet.com subsidiary into a wider e-commerce sector, a sign that WAL-MART can also easily serve young urban consumers through its main shopping website (WAL-MART official website).

    According to reports, the acquisition of Jet failed to achieve WAL-MART's original expectations.

    In the past few years, WAL-MART has launched the electronic commerce "great leap forward". In e-commerce products and services, it shows "what Amazon has and what WAL-MART wants." WAL-MART has launched Amazon's services at a lower price, such as mail delivery members and the next day's delivery. But this strategy to catch up with Amazon has brought pressure to WAL-MART. Gambling on e-commerce has also led to some internal executives' dissatisfaction.

    In the India market, WAL-MART also spent billions of dollars to acquire Flipkart, the largest e-commerce website in India. Just this week, foreign media reported that Flipkart will launch free online video service in India, a move similar to Amazon's strategy of sending mail members worldwide, and the purpose is to further stimulate the growth of online shopping users.

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