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Founded by high school sweethearts in a college dorm room, the San Francisco company had grown on the backs of its loyal customers to $150m in revenue in 2015. Henry liked how genuine the brand seemed. That is, until it was purchased by Wal-Mart Stores Inc. in March.
“I shed a little tear when I deleted the app. I felt like I was breaking up with someone,” the supply chain analyst said.
Wal-Mart is aggressively expanding its e-commerce clout. The retailer purchased e-commerce site Jet.com last year and is offering free shipping and discounts on Walmart.com as it bulks up to better battle with online shopping giant Amazon.com.
But even Wal-Mart e-commerce communications Vice President Dan Toporek acknowledges that Walmart.com and its massive inventory of 50 million distinct products will not attract the cool kids who are — or were — shopping at places such as ModCloth.
Analysts see a trend with Wal-Mart’s recent buys.
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