Marking the brand’s third retail sale to consumers this year.
Earlier this month, the large retailer sold Bonobos to WHP Global and Express, and in February Moosejaw was transferred to Dick’s Sports Equipment. The sale reflects a revision of the 2017-2018 strategy led by Marc Lore, former head of e-commerce at Walmart.
The retailer bought Eloquii in 2018 for $100 million, one of the many digital fashion brands with a niche and loyal customers. The goal is to expand the retailer’s clothing and home accessories online. The acquisition will also attract talent to help Walmart accelerate its digital strategy. “Eloquii has joined Walmart’s portfolio of digital verticals to expand our 14+ women’s range and offer unique and differentiated products to underserved and growing segments,” said a Walmart spokesperson. Jaime Laczkowski. “Since acquiring Eloquii, Walmart.com has hundreds of millions of items and we decided it was time to sell Eloquii.”
FullBeauty Brands is buying Eloquii for an undisclosed amount, retaining founder and brand leader Julie Carnevale. Eloquii will join the portfolio of plus size clothing, footwear and swimwear online under FullBeauty Brands, which has five million active customers.
“Eloquii brings a lot of data and has a lot of research into their business,” Jim Fogarty, CEO of FullBeauty Brands, told CNBC. “[Eloquii] is going to market very quickly and we want to learn a little bit from it.”
Fogarty envisions Eloquii as the anchor of what he calls FullBeauty Brands’ “digital store.” FullBeauty Brands’ for-profit brands generate $1 billion in annual revenue, a fraction of Target’s total market of $81 billion. Fogarty hopes Eloquii will help him reach millennials and Gen Z customers. Following the acquisition of Eloquii, Walmart created a new brand that includes the amount that the retailer will continue to save after the sale.
Walmart’s e-commerce strategy has shifted from increasing the number of products available to improving the financial performance of the digital business, executives said. “We’re now in a phase where it’s not so much about maximizing sales and delivery in-store, e-commerce inventory and [time] e-commerce square footage, but fulfilling and improving service delivery. ,” Walmart CEO Doug McMillon (Doug McMillon) told investors earlier this month. Although Lore will leave Walmart in 2021 after five years on the job, his contributions have transformed the retailer’s e-commerce business, including shipping services, customer delivery options and delivery speeds. His efforts have increased the number of products sold online from 70 million to “hundreds of millions” today. Walmart’s online sales now represent 13% of total annual sales at the end of the most recent fiscal year, up from 5% in 2019.
Besides Eloquii, Bonobos and Moosejaw, in recent years Walmart has discontinued Modcloth, Bare Necessities and ShoeBuy acquired under Marc Laure.