So apparently, Walmart has decided to ditch the whole “consumer brand” thing this year. They’re like, “Peace out, we’re done with that.” They sold off Bonobos to WHP Global and Express, and Moosejaw to Dick’s Sporting Goods. This is a pretty big reversal from their strategy a few years ago under Marc Lore, the former head of e-commerce, who was all about buying up digital apparel brands with niche and loyal followings. Now, Walmart is all like, “Nah, we good.”
But let’s take a little walk down memory lane, shall we? Remember when Walmart bought Eloquii for a cool $100 million back in 2018? It was part of their plan to expand their online assortment with more high-margin apparel and home goods. Walmart even said they wanted to bring in some talent that could help them accelerate their digital strategy. Well, turns out they just weren’t feeling it anymore, so they sold Eloquii to FullBeauty Brands. Making that money, honey!
Jim Fogarty, the CEO of FullBeauty Brands, seems pretty stoked about the acquisition. He loves how “data-driven” Eloquii is, and is excited to tap into their “feedback loop.” Sounds like a blast, right? He’s also planning on making Eloquii a key player in FullBeauty Brands’ “digital mall.” I’m not exactly sure what that means, but it sounds like a place where tired moms can shop in their PJs with a glass of wine in hand. Sign me up!
In any case, FullBeauty Brands is hoping Eloquii will help them reach more millennial and Gen Z consumers. You know, the TikTok and Instagram crowd. I am not ashamed to admit that I am no longer cool enough to know what the kids are into these days. But if they’re into plus-size apparel, shoes and swimwear, then FullBeauty Brands has got them covered. They already have 5 million active customers, and they’re gunning for more.
Oh, and by the way, Walmart is still selling their new brand of inclusive-sized apparel that they created after acquiring Eloquii. Just in case you were wondering.
So, what’s behind Walmart’s decision to ditch these brands? Well, apparently they’re shifting their e-commerce goals from “scaling store pickup and delivery” to “execution and operating margin improvement.” Listen, I don’t really know what any of that means. All I know is that Walmart is all about making money now, and consumer brands might not be the best way to do that.
It’s kind of a bummer, though. Marc Lore did a lot to transform Walmart’s e-commerce business, and now it seems like they’re just getting rid of everything he touched. Remember Jet.com? Walmart bought that for $3.3 billion and then eventually shut it down. Ouch. On the bright side, Walmart’s online sales now make up 13% of their total annual sales, which is a big jump from a few years ago. So I guess they’re doing something right.

Serious News: cnbc