By Krystina Gustafson. Source: CNBC.
Wal-Mart will reportedly scoop up another online retailer.
According to Jezebel fashion blog, Jet.com on Thursday will ink a deal with Modcloth, an eclectic women’s fashion brand known for serving curvy customers.
Jezebel obtained a recording of Modcloth CEO Matthew Kaness telling employees about the deal, which will be announced publicly on Friday, the publication said.
A spokesman for Wal-Mart, Jet’s parent, declined to comment on the story. A representative for Modcloth did not respond to CNBC’s request for comment.
Yet if a deal for the were to go through, it would be the latest in a spate of purchases by Wal-Mart. In a bid to close the gap with Amazon, the world’s largest retailer began its buying spree with the $3.3 billion acquisition of Jet last year.
Shortly after, Jet purchased Shoebuy for $70 million. And last month, Wal-Mart snapped up outdoor apparel retailer Moosejaw for $51 million.
“Assortment is driving a lot of these acquisitions,” CEO Doug McMillon said at the Bank of America Merrill Lynch Consumer & Retail Technology Conference Tuesday.
“We can pick up some of these companies that are great in terms of the assortment and the service they provide, but they don’t have enough money to lose, to go market their brand and scale it.”
McMillon’s comments were made in relation to the company’s recent acquisitions and included no mention of a potential deal with Modcloth.
Wal-Mart’s acquisition strategy opens it up to a new set of shoppers. Jet’s typical customer, for example, is younger, more urban and more affluent than a traditional Wal-Mart shopper.
The plan appears to be working. Wal-Mart’s domestic online sales increased 29 percent during the holiday quarter.
Founded in 2002, Modcloth sells its own merchandise and products from hundreds of independent designers. The company had previously raised nearly $79 million in seven rounds of funding, according to Crunchbase.