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walmart is selling online apparel brand Eloquii to FullBeauty Brands, marking the retailer’s third divestment of a direct-to-consumer brand this year.
big-box retailer bonobos sold WHP Global and express earlier this month and offloaded moosejaw To dick’s sporting goods in February. The sale is a reversal of Walmart’s 2017-18 strategy led by former head of e-commerce Marc Lorre.
The retailer reportedly bought Eloquii in 2018 for $100 million, one of several digital apparel brands with a niche and loyal consumer base. The goal was to build the retailer’s online assortment with high-margin apparel and home merchandise. The acquisition will also bring talent that could help Walmart accelerate its digital strategy.
“Eloquie joins Walmart’s portfolio of digitally native vertical brands to expand our women’s assortment in sizes 14+, and bring unique and differentiated offerings to an underserved but growing segment,” Walmart spokesperson Jaime Laczkowski said in a statement. offers the product.” “Since acquiring Eloquii, Walmart.com has grown to hundreds of millions of items, and we have decided the time is right to sell Eloquii.”
FullBeauty Brands is buying Eloquii for an undisclosed amount while retaining its co-founder and brand leader Julie Carnevale. Eloquii will join a portfolio of online plus-size apparel, footwear and swimwear brands under FullBeauty Brands, which boasts 5 million active customers.
“Eloqui is very data driven, and there’s a huge feedback loop in their business,” Jim Fogarty, CEO of FullBeauty Brands, told CNBC in an interview. ,[Eloquii] Very quick to market, and we’re looking to learn from that.”
Fogarty plans for Eloqui to be an anchor in FullBeauty Brands’ “digital mall”. Profitable FullBeauty Brands has $1 billion in annual revenue, a tiny slice of the $81 billion total addressable market for plus-size apparel. Fogarty hopes Eloqui will help it gain a foothold with more millennial and Gen Z consumers, what he calls “the more TikTok, Instagram generation.”
After acquiring Eloqui, Walmart created a new brand of inclusive-size apparel, which the retailer will continue to sell after the divestment.
According to executives, Walmart’s e-commerce goals have shifted from increasing the number of items available to improving the financial health of the digital business.
“We are now in a phase that is less about store pickup and delivery, more about eCommerce assortment and more about growing eCommerce [fulfillment center] square footage, and more on improving execution and operating margin,” Walmart CEO Doug McMillan said in the company investor day earlier this month.
while Vidya left walmart Five years later in 2021, his contributions significantly transformed the retailer’s e-commerce business, including fulfillment operations, shopper delivery options and speed. His efforts have resulted in the number of products sold online growing from 70 million to “millions” today.
Walmart’s online sales now account for 13% of total annual sales, up from 5% in 2019, as at the end of its most recent fiscal year.
To be sure, there were also a number of lore-based businesses that were ultimately not successful, including text messaging concierge service Jetblack and last wind down Lore founded Jet.com, an e-commerce company that was bought by Walmart for $3.3 billion and which brought Lore to the retailer.
In addition to Eloquii, Bonobos and Moosejaw, Walmart has unloaded ModCloth, Bare Necessities and ShoeBuy in recent years, all lore-led acquisitions.