Walmart-owned Jet is acquiring cool, quirky ModCloth to target millennial shoppers

Tammy Harvey
March 18, 2017

News website Jezebel reported Wednesday afternoon that, through Wal-Mart, has acquired women's fashion retailer ModCloth for an unspecified sum.

Jet is investing in fashion at a moment when Amazon-already the top online clothing store for millennials-is positioning itself to become the largest apparel retailer in the US.

ModCloth, which has more than 300 employees, will continue to be based in San Francisco, Los Angeles and Pittsburgh, but will join the Walmart e-commerce retail organization.

With the acquisition of over the summer, Walmart signaled its intention to be a major force in ecommerce and to better positioned to compete with established competitors like Amazon. "I ask that we keep this within the company, as we usually do". The deal is expected to close today with a public announcement to follow.

The news was revealed to ModCloth employees in an all-hands meeting, a recording of which was given Jezebel.

Founded in 2002, ModCloth sells its own vintage-inspired branded merchandise in a full range of sizes, along with a curated selection of styles from hundreds of indie designers.

Founder Susan Gregg Koger has been vocal about her support for issues like equal pay and equal representation in the workplace. " will grow faster, the seamless shopping experience we're pursuing will happen quicker, and we'll enable the Jet brand to be even more successful in a shorter period of time". Not exactly a great return for Modcloth, considering they raised $78m in funding. I think there's a lot of overlap culturally with what they're about and what we're about.

Jezebel has contacted Modcloth, Jet, and Walmart for comment and will update if we hear back.

Meanwhile, Modcloth has not only launched a new campaign called #StyleForAll featuring Tess Holliday but has also partnered with Wrangler to launch a seven-piece Wrangler x ModCloth capsule collection, which launched this week as well.

Other reports by Ligue1talk

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