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Wal-Mart acquires online outdoor retailer Moosejaw

15. March 2017
The all-cash deal was closed on 13th February 2017 for approximately $51 million and is a further step of the world’s largest retailer to tap the U.S. eCommerce market.

 

Wal-Mart acquires online outdoor retailer Moosejaw

 Moosejaw sells apparel and gear especially for hiking, climbing, camping, snow sports, yoga, swimming and biking. It cooperates with more than 400 brands including Patagonia, The North Face, Marmot and Arc’teryx. The company was founded in Michigan in 1992 and operates ten physical stores despite its large web presence. "Apparel and accessories is now the number one category for digital commerce, according to comScore Inc, and we gain the experience of another well-established e-commerce player, this time in the active outdoor category", Wal-Mart declared. 

The deal is the retailer’s third acquisition in not much more than six months. In August 2016 the company had already taken over the online startup Jet.com for over $3 billion. Its founder Marc Lore became the new eCommerce chief of Wal-Mart in charge of revitalizing online sales. One of the first changes he introduced was free two-day shipping. In October, Wal-Mart stated that it plans to reduce the openings of new bricks and mortar retailers and focus on expanding its eCommerce business instead. In December, the online footwear retailer ShoeBuy was added to the 15 startups incorporated in the previous five years, for a selling price of $70 million. At the moment, Wal-Mart’s online sales make up approximately 3% of total sales. The goal is to achieve an increase in eCommerce of 20 to 30% in the second half of this year.  Wal-Mart expects an even faster growth in the following few years, hoping to further close the gap to rival Amazon.

Moosejaw’s CEO Eoin Comerford and the over 350 employees will remain at the headquarters in Madison Heights, Michigan. The company will continue to operate its site and stores as before as a standalone separate brand. 

 

Sources:

Wal-Mart

Reuters

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