Wal-Mart Stores Inc. has purchased one of the largest online shoe stores to add to their recent acquirement of Jet.com.
In 2000, according to Top500Guide.com, ShoeBuy launched and has had great success selling now on many online shopping locations such as Google Shopping, Shop.com and Amazon Inc. ShoeBuy’s market is reaching over 55% of its sales to females and has over 3000 affiliates in its marketing program.
Wal-Mart has already stated that “ShoeBuy CEO Mike Sorabella, his executive team, and ShoeBuy’s 200-plus employees will continue to be based in Boston and will join our e-commerce organization,” as well as stating that ShoeBuy’s online store and brand will remain per the deal that was made during the purchase.
On January 5th Wal-Mart announced that it bought the online apparel and shoe retailer ShoeBuy.com Inc. for $70 million. According to the Internet Retailer Top 500 guide of 2016 Wal-Mart was ranked number 4 and ShoeBuy was ranked at 101. Wal-Mart has spoken out saying that the recent purchase will help boost Jet.com’s selection of apparel and footwear. Jet.com was purchased in August by Wal-Mart for $3.3 billion through a cash and stock deal while Jet.com had recently purchased Hayneedle Inc. less than a year ago to add more products for their inside and outside home products. The recent deal seems to be for ShoeBuy’s product assortment as well as the company’s unique brand.
In 2015, Top500Guide.com, reported that the Internet Retailer ShoeBuy brought in an estimated $374 million in sales. Even though these sales are up slightly from the previous year, there are professionals that believe ShoeBuy’s growth has reached a lull.
The Managing Director of Investment Banking Firm Tully & Holland, Stuart Rose stated “In all likelihood they lose a lot of money,” continuing to say “I’m not sure ShoeBuy is still growing, and I doubt they were profitable.”
