|
The
world's largest retailer bought a bunch of clothing brands
including Bonobos and Modcloth in 2017 and Eloquii last year to
appeal to younger shoppers in its effort to compete with
Amazon.com Inc <AMZN.O>.
According to Vox's report, all three businesses are unprofitable
and the decision to sell the brands comes after Walmart was
"unable to turn around the company's economics" in the near
term.
Modcloth will likely be sold this year, but Walmart plans to
retain Bonobos, after contemplating a sale, the report said.
The report also noted that the retailer is projecting losses of
more than $1 billion for its U.S. e-commerce division in 2019,
on revenue of between $21 billion and $22 billion.
Walmart was not immediately available for a comment.
Last month the company announced a sweeping overhaul at Jet.com,
an online startup it acquired in 2016 for $3.3 billion, after it
failed to live up to the retailer's e-commerce ambitions.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini
Ganguli)
[© 2019 Thomson Reuters. All rights
reserved.] Copyright 2019 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
