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Chronicles

The story behind the story

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Walmart sells Shoes.com and Bare Necessities lingerie brand as a part of a broader streamlining of its digital businesses to focus on its main website

Matthew Boyle / Bloomberg :

Bloomberg Matthew Boyle

Context & Ripple Effects

Walmart spent the late 2010s assembling a portfolio of standalone e-commerce brands — including its acquisition of Art.com in 2018 — while simultaneously trying to merge its store and web organizations, an effort that produced an internal culture clash as online spending pinched margins. Selling Shoes.com and Bare Necessities is the portfolio side of that same retrenchment: rather than running many storefronts, Walmart is concentrating traffic and investment on Walmart.com.

The move echoes a playbook Walgreens ran four years earlier when it shut down Drugstore.com and Beauty.com — brands from a $429M acquisition — to funnel customers to its own site, suggesting the standalone-vertical era of retail e-commerce is being unwound across the industry.

First-order effects

  • Shoes.com and Bare Necessities pass to new owners who must operate them without Walmart's traffic and fulfillment scale, while Walmart's digital business shrinks to a single flagship site plus whatever remains of its acquired brand stable.

Second-order effects

  • Other properties from Walmart's acquisition spree — Art.com among them — now sit under the same consolidation logic, making further divestitures or absorption into Walmart.com plausible next steps.

Third-order effects

  • If the Walgreens and Walmart moves mark a pattern, the multi-brand e-commerce holding strategy that retailers pursued through the mid-2010s gives way to flagship-site concentration, with acquired verticals either sold off or folded into the parent domain.

The trend: Large retailers are unwinding their multi-brand e-commerce acquisitions and consolidating around a single flagship website, with Walmart following the path Walgreens set with Drugstore.com.

Discussion

  • @juokaz @juokaz on x
    Walmart continues to offload acquisitions it made in 2017/2018. https://www.bloomberg.com/...
  • @bizboyle Matthew Boyle on x
    ICYMI (and you probably did amid TikTok madness): Walmart is divesting two more of its online brands https://www.bloomberg.com/... via @technology