The ShoeBuy purchase follows the same acquisition strategy Jet employed when it paid a reported $90 million to buy the online home furnishings retailer Hayneedle to help boost its assortment in that area.
In an interview with Recode, Lore said it’s “a fair assumption” that Jet and Walmart will pursue more of these types of acquisitions, most likely “in the categories where they are long-tail, high-margin products and harder-to-crack brands,” said Lore, who runs both Jet and Walmart.com following Walmart’s $3 billion acquisition of his startup.
ShoeBuy will stay a standalone site. And Jet.com founder Marc Lore, now Walmart’s new e-commerce boss, told Recode that more acquisitions like this will be coming. So, the main take away here is that Jet.com/Walmart will most likely turn into a holding for online retailers hold together by centralized software and services. (Like, for example, logistics and consumer facing services like ShippingPass.)
ShoeBuy founder Scott Savitz, who led the company until its sale to IAC in 2006 but has not been with ShoeBuy since then, told xconomy:
“There are probably very good synergies with this,” Savitz said in an e-mail. “Jet.com gets access to the amazing representation of brands (and the relationships) Shoebuy.com has, and Shoebuy.com will get even wider distribution and other cost savings by partnering up with an 800-pound gorilla in Jet.com/Walmart.com.”
ShoeBuy carries more than 800 brands and over a million items including footwear for women, men and kids, as well as clothing and accessories, such as outerwear and handbags.
ShoeBuy was founded in 1999, as one of the first companies to sell shoes online. It is headquartered in Boston, MA.
How will ShoeBuy fit into Jet’s business?
ShoeBuy will operate as a standalone and complementary site.
Jet will gain the experience of a well-established ecommerce player in the footwear industry, who has transformed the online shopping experience for millions of customers. ShoeBuy brings access to a large assortment of products, strong industry relationships, and rich content that will further enhance our customer experience.