The shopping giant announced its plans to acquire the digitally native, women’s plus-size clothing brand ELOQUII for an unreported sum — although it says it’s bigger than its ModCloth acquisition ($75m) and smaller than its Bonobos acquisition ($310m).
What is this to you, Walmart? Some kind of game??
TechCrunch reports that the all-cash deal will bring ELOQUII CEO Mariah Chase, her executive team and its 100 employees onto the Walmart team when the deal closes later this year.
Plus-size fashion brings in plus-size cash
Plus-size fashion is one of the fastest-growing segments of women’s apparel (more than half of US women between 18-65 wear a size 14 or higher) — an estimated $21B market, according to the retailer.
And ELOQUII is feeling that market potency: Founded in 2011, then relaunched in 2014 as a direct-to-consumer brand catering to plus-size fashion.
Since 2015, the company has seen 3x revenue growth and has achieved a Net Promoter score of around 80.
Own the niches, own the ríches
ELOQUII is yet another addition to the retail giant’s niche closet of outdoor brands, trendy graphic tees, and millennial women, to help it expand its presence and inventory in recent years.
The company recently acquired Moosejaw for $51m and Jet.com for $3B (along with the aforementioned Modcloth and Bonobos deals), and it seems no online retailer with an avid fanbase is safe from their cash-flush clutches.
Although, fans of some of its newly acquired brands are less-than-eager to become “people of Walmart.”