Walmart sells its outdoor e-commerce company Moosejaw, which was exposed to have management loopholes!

According to foreign media reports, Walmart recently announced that it will sell online outdoor retailer Moosejaw to Dick's Sporting Goods Inc. The financial terms of the transaction were not disclosed and are expected to be completed in March.

Walmart acquired Moosejaw for $51 million in February 2017 to strengthen its e-commerce business. At the time, the deal was seen as the starting point for Walmart's entry into the online clothing field.

"The addition of Moosejaw expands our variety and expertise in the professional outdoor products category, while also making Moosejaw more well-known," a Walmart spokesperson said earlier. "Since acquiring Moosejaw, the number of items on Walmart.com has grown from 70 million to hundreds of millions. Although Moosejaw operates as an independent business, it is able to leverage Walmart's scale and customer reach to drive sales growth. We are excited about the arrival of Moosejaw because it can help Walmart reach more athletes and outdoor enthusiasts."

It is learned that Moosejaw was founded in 1992 and is headquartered in Michigan. In addition to its online business, Moosejaw also operates physical stores in Arkansas, Colorado, Illinois, Kansas, Michigan and Missouri.

According to reports, at the time, Marc Lore, president of Walmart's e-commerce division, wanted to expand its digital brand portfolio by acquiring Moosejaw and join the M&A frenzy. The sale shows that large companies like Walmart face huge challenges in managing "direct-to-consumer brands" (DTC brands).

It’s worth noting that Moosejaw isn’t the first e-commerce brand Walmart has acquired and then sold. In 2017, the company acquired women’s clothing site ModCloth, then sold it to investment firm Go Global in 2019. Around the same time, Walmart also acquired lingerie retailer Bare Necessities, then sold it to global manufacturer and marketer Delta Galil in 2020. The company also acquired online shoe retailer ShoeBuy in 2017, then sold it to private investment firm CriticalPoint Capital in 2020.

It is reported that by acquiring Moosejaw, Dick's Sporting Goods will expand its e-commerce sales channels while gaining a more loyal customer base.

Editor ✎ Nicole/

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