May 19, 2020
Walmart adds Bare Necessities to its ecommerce portfolio
Walmart has announced its acquisition of Bare Necessities, an online intimate clothing retailer, as it continues to diversify its ecommerce offering
In a blog post on Walmart’s website, Denise Incandela, head of fashion at Walmart, said that the firm’s acquisition strategy is based on two core company types: “category leaders with specialized expertise and assortment”, and “digital brands that offer unique products customers can’t find anywhere else”, noting that Bare Necessities represents the former.
Incandela noted that Eloquii, plus-size clothing retailer and another October acquisition for Walmart, fits the latter.
The drive to purchase new components for its ecommerce clothing offering has been to oppose the rise of Amazon in the space.
According to Reuters, citing a report from Morgan Stanley, “Walmart had 8.6 percent of the U.S. apparel market in 2017, followed by Amazon at 7.9 percent and Target Corp at 4.8 percent.
- AT&T and Time Warner will launch a streaming service to rival Netflix in 2019
- PayPal launches first brick and mortar cash services
- Apple and Dialog Semiconductor enter US$600mn agreement
“The report estimated Amazon will overtake Walmart as the leading retailer in the apparel category in 2018.”
Broadening its clothing range through the acquisition of dedicated, leading brands and a host of options that are difficult to find elsewhere gives Walmart a better chance of keeping pace with Amazon as it continues to march to the top.
Bare Necessities’ CEO and co-founder, Noal Wrubel, will continue to head up the retailer whilst also taking charge of the intimates category for both Walmart.com and Jet.com.
The intimates specialist will continue to operate as a standalone website, with plans for assortment integration into Walmart’s ecommerce platforms over time.