Wal-Mart Stores Inc. more commonly known as Walmart has 11,666 stores spread across 28 countries that operate under 63 different brands. Last year, Fortune Global 500 designated Walmart as the largest company in the entire world from the perspective of the revenue. In order to refresh its online sales, the giant company proceeded to buy Moosejaw for $51 million in cash. The Moosejaw company is an outdoor apparel retailer that is famous for the odd direction followed by its marketing team.
On Wednesday, Walmart and Moosejaw announced together the presence of a new merger in town. In exchange for $51 million in cash, Walmart is going to be the owner of the outdoor apparel retailer. The global juggernaut decided to keep the official website of its latest addition and operate a total of 10 brick-and-mortar stores. Employees can continue to live in Michigan. Moosejaw became world renowned for its modern and quirky marketing.
Eoin Comerford, the chief executive officer at Moosejaw, reassured the fans of the brand that there is not going to be any major changes to their business format. The company will continue its business as usual by selling quality products as an outdoor apparel retailer. Their viral Moosejaw Madness marketing direction will receive new content in the same voice as before.
The main aspect that is going to change in the wake of the new merger is going to be the marketing. However, Walmart understands that the outdoor apparel retailer has already built a reputation of its own and any major change can backfire to their disadvantage. Thus, the two companies will debate together on how to amplify their marketing presence so that the voice remains the same while the online sales are skyrocketing.
The main long-term plan is to enhance the Moosejaw knowledge regarding the online marketing of apparel and accessories. In addition, Walmart pursues to create enticing benefits to Moosejaw suppliers through their own sites. On the other hand, the two companies are not going to mix their products together. A Walmart customer will not bump into a Moosejaw quirky T-shirt all of a sudden. Both parties agreed that their target public is too different to make this a good strategy.
This is not the first time Walmart made a multi-million acquisition. It has been a while since the giant company enriched its portfolio with e-commerce stores such as Jet.com and ShoeBuy.com. This penetration in the online commerce is a strategy to better compete with huge retailers like Amazon.
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