You must have read our recent article regarding Walmart’s decision to sell two of its e-commerce brand one after the another where it announced that it is selling MooseJaw. After that, Walmart also said that it is selling Bonobos. Now, we have another announcement from Walmart as the company is also selling another e-commerce brand named Eloquii. Talking about Eloquii, it is a plus-sized brand in the apparel niche and it has been in Walmart’s portfolio for close to 4 years now. It is also worth noting that Walmart has reached a deal to sell Eloquii to FullBeauty.
Talking about the sale of Eloquii to FullBeauty, it is worth noting that FullBeautry has said that the sale will be complete “subject to certain customary closing conditions”. Walmart released a statement saying that “ELOQUII joined Walmart’s portfolio of digitally native vertical brands to expand our Women’s assortment in sizes 14+, and offer a unique and differentiated product in an underserved but growing segment” “Since acquiring ELOQUII, Walmart.com has grown to hundreds of millions of items, and we’ve decided it’s the right time to sell ELOQUII.”
FullBeauty CEO, in a statement, said “This strategic acquisition complements our brands perfectly and allows us to leverage our scale and platform to support ELOQUII and our shared mission,”. “While we hope to bring scale and platform expertise to bear, we will also humbly be learning from Julie [Carnevale] and the talented ELOQUII team, who are the soul of the ELOQUII brand DNA, and who fortunately are joining us on this next phase of the ELOQUII journey.”
It is worth noting that Walmart is also looking to cut costs inside the company and we have seen reports of hundreds of jobs being cut at warehouses owned by Walmart as part of their cost-cutting measures. Also, the sales of brands that are not performing as well as expected could be a good idea for Walmart due to the money it is burning on those brands. It is also possible that when those brands are in someone else’s hands, it can perform better and not lose all of its value.