American retail chain Walmart has just acquired online shoe retailer ShoeBuy to help its other recent acquisition, Jet.com, gain a foothold in the online struggle against competitor Amazon. ShoeBuy in itself is also a rival to Amazon's Zappos.
Amazon vs Jet.com
Last August, Walmart acquired Jet.com in an effort to boost its online presence against Jeff Bezos’ online giant. Despite the acquisition, both companies would continue to work separately, but Walmart is definitely trying to help its acquisition with its latest purchase.
ShoeBuy is, in essence, also competing with Amazon as it is an online shoe seller and is in direct competition with Amazon-owned Zappos. Costing 70 million dollars (66 million euro), it will now join Walmart’s ranks, also as an independent entity. With its more than one million items, from 800 brands, it should help Walmart’s online product range, as it includes not only shoes, but also clothing, accessories and bags.
However, Amazon is not standing idly by, as there are rumours that it intends to acquire bankrupted American Apparel, which would instantly give it a chain of physical stores. Cowen & Co therefore believes Amazon will become the top clothing retailer in the United State this year.