Walmart Inc. announced on Friday it has acquired Internet Retailer Top 5oo-ranked intimate apparel merchant Bare Necessities. The retail giant did not disclose the terms of the deal. This is Walmart’s second acquisition this month after it acquired plus-size apparel retailer Eloquii Design Inc. for $100 million.
Bare Necessities, which has been selling intimates online for 20 years, will continue to operate its e-commerce website, BareNecessities.com, as usual and will run as a standalone and complementary brand to Walmart’s other e-commerce sites. Over time, Walmart plans to integrate the Bare Necessities assortment onto Walmart.com and Jet.com, says Denise Incandela, head of fashion for Walmart U.S. e-commerce. Bare Necessities co-founder and CEO Noah Wrubel will continue to run Bare Necessities while also overseeing the intimates category for Walmart.com and Jet.com.
Bare Necessities offers shoppers more than 100,000 SKUs for bras, swimwear, shapewear and sleepwear from more than 160 brands. The intimates retailer grew online sales an Internet Retailer-estimated 12.0% in 2017, to more than $128.2 million, according to Top500Guide.com.
“Joining forces with Walmart provides the opportunity to help even more women discover the intimates they are looking for,” Brooke Glassberg, Bare Necessities’ editor, wrote in a blog post announcing the acquisition. “As we began conversations with their team, we realized how much we had in common around customer commitment, and that we could do even more if we combine our expertise in intimates with Walmart’s deep resources, scale and relationships.”
Incandela also notes that Bare Necessities fits into Walmart’s acquisition strategy in which the retailer buys companies that are category leaders with specialized expertise and product assortment, such as sports gear and apparel retailer Moosejaw and Shoes.com. Walmart in August opened a Premium Outlet Store on its site curated by Moosejaw.
Bare Necessities is the largest web-only seller in Internet Retailer’s Sleepwear/Lingerie subcategory. And it is the third-largest overall in the category, behind L Brands Inc.-owned Victoria’s Secret Inc. and Hanes Brand Inc.
The Bare Necessities purchase continues Walmart’s acquisition spree. Since August 2016, Walmart has acquired seven online retailers, including Eloquii and Bare Necessities. These latest acquisitions also follow efforts by Walmart.com to establish itself as a fashion destination, which include redesigning Walmart.com and adding higher-end fashion options, such as its Lord & Taylor premium brands.
Walmart is No. 3 in the Internet Retailer 2018 Top 500. Prior to the acquisition, Bare Necessities was ranked No. 303. L Brands is No. 26. Hanes is No. 250.