Walmart has made several e-commerce deals over the past two years.
The largest purchases were online womenswear retailer ModCloth and Bonobos, a company that designs and sells menswear primarily online. Now Walmart is considering a possible sale of both acquisitions.
According to the report of the Vox resource, which has collected data from many different sources, ModCloth will most likely be sold this year. The company was acquired by Walmart in 2017, the transaction amount was $50 million.
As for the Bonobos brand, which was also bought in 2017 for $310 million, the situation is somewhat different. After seriously considering a potential sale, Walmart decided to drop the idea and keep the brand under its ownership.
The company has acquired several online-focused brands over the past few years, including Bonobos, ModCloth, Jet, Moosejaw, Parcel, Hayneedle, Bare Necessities, and Art.com
Walmart has had to weigh decisions to sell several of its e-commerce brands against a backdrop of bleak outlook for the industry. It is estimated that Walmart's US e-commerce arm could end 2019 with a loss of more than $1 billion.
Also, some brands will remain under the ownership of Walmart, but will undergo a significant reorganization. Last month, it was announced that the major changes would affect online commerce startup Jet.com, which was acquired in 2016 for $3.3 billion. The reorganization will include changes in Jet's leadership, as well as the transfer of company employees to the walmart.com division.
Online commerce is one of the most important areas for Walmart today, as it is the one that is growing most rapidly and is the most important for the future development. If the company fails to gain a foothold in this market, then it will finally lose to its main Amazon competitor, which will become the sole owner of it. Already today, Amazon holds a share of 38% of online sales in the US compared to 32% in 2016. Walmart's position in e-commerce is much more modest - 4.7%, compared to 2.6% in 2016.