Walmart’s Jet.com buys online shoe retailer
Jet.com, the e-commerce company owned by US retail giant Walmart, has bought online footwear retailer ShoeBuy.com for US$70 million in a deal that closed on 30 December, 2016.
The acquisition will help Jet better compete with Amazon, which owns ShoeBuy competitor Zappos and is set to become the largest apparel retailer in the US this year, surpassing Macy’s, Nordstrom, Walmart and TJ Maxx, according to a 2015 report by financial firm Cowen and Company.
Founded in Boston, Massachusetts, in 1999, ShoeBuy offers over one million items from over 800 brands in the footwear, clothing and accessories categories.
According to a statement from Walmart, the retailer will continue to operate as a standalone site complementing Jet’s offering. ShoeBuy’s CEO Mike Sorabella, his executive team and the company’s 200-plus employees will continue in their current roles.
Walmart made plain its aim to take market share off Amazon with its $3.3 billion acquisition of e-commerce company Jet last year. But even as the retail giant gives Jet ammunition, Amazon is forging ahead with its own investment in the apparel business.
The e-commerce giant is reportedly looking to launch its own activewear line and is among those looking to acquire the bankrupt retailer American Apparel. And no wonder: clothing and accessories are now the top-selling category online in the US, according to a report comScore.
The analytics firm said mobile commerce was a key factor in the rise of clothing purchases online.