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The Arkansas Democrat Gazette reports that Walmart is selling online fashion retailer ModCloth, which it acquired in 2017, to Go Global Retail, described as "a brand investment company founded in 2016."

Terms of the deal were not disclosed.

Walmart bought ModCloth as part of a broader move to diversify its e-commerce portfolio; around the same time, it also acquired Jet, Moosejaw, Shoebuy and Hayneedle.

The story says that "a Walmart spokesman said Friday that when the company acquired ModCloth, "our primary focus was to build assortment through proprietary, digitally native brands." Since then, the spokesman said, "our approach has evolved and our current focus is on building direct-to-consumer brands that we can leverage in an [omnichannel] way."
KC's View:
When Walmart bought Jet and put Marc Lore in charge of all its US e-commerce operations, ModCloth seemed to be part of a broader strategy that would position it better against Amazon. But now, as that strategy ate into Walmart's bottom line, the impulse seems to be to get back to fundamentals. Which is creating a lot of conversation out there about how long Marc Lore will be in the Walmart picture once his contract ends.