Walmart plans to acquire plus-sized fashion startup Eloquii for $100 million
Last year, Walmart spun up a new team tasked with creating new ways to differentiate from Amazon in the long term. One answer: Incubating and acquiring digital-native brands that have direct relationships with customers and appeal to younger generations of shoppers — and won’t be sold on Amazon.
Today, the world’s largest brick-and-mortar retailer has taken a small step in that direction by agreeing to acquire Eloquii, a four-year-old startup that makes and sells its own line of plus-sized women’s fashion primarily through its own website. Eloquii also sells through five of its own stores, as well as online services like Dia&Co and Stitch Fix.
Financial terms of the deal were not disclosed, but a person familiar with the acquisition said Walmart will pay $100 million for Eloquii, or about 2.5 to three times annual revenue. Eloquii CEO Mariah Chase and her 100 employees will join Walmart’s e-commerce division and report to its head of digital consumer brands Andy Dunn, who sold his menswear brand Bonobos to Walmart last year for $310 million.
Read the full article on Recode.