Jet.com bought ModCloth, which makes a strange kind of sense

Amazon has its private labels, and Walmart has Jet.com, which now has ModCloth.

The e-commerce subsidiary of Walmart on Friday closed a deal to buy ModCloth, the popular online retailer. The companies declined to confirm the price of the deal, but earlier reports pegged it between $50 and $75 million.

Jezebel first reported news of the acquisition earlier this week before the deal closed. The news was noteworthy, since ModCloth is known for its alternative, indie vibe and size-inclusive philosophy — kind of the opposite of Walmart. The indie retailer is most popular with 18- to 35-year-old women, a coveted group Walmart likely wants to woo.

Original image has been replaced. Credit: Mashable

"Today marks the beginning of the next stage of ModCloth’s journey. I am excited to announce that we are joining the Jet.com and Walmart family," ModCloth founder Susan Gregg Koger wrote in a blog post. "This will give us the necessary resources and support that we need as a business to grow. Growth allows us to reach more women, grow our community, and amplify our message. Our mission to help our customers feel like the best version of themselves continues. And our commitment to inclusivity continues. Our amazing team continues. And we can open more stores — in your hometown! I hope you will continue to join us as well on this next phase of our journey together."

ModCloth will retain its own website, as well as its IRL store in Austin, Texas. ModCloth staff will "bring their significant experience and unique talents to our U.S. e-commerce efforts," Walmart said in an email on Friday. Employees, many of whom Jezebel reported were unhappy with news of the acquisition, will become part of Jet.com. And the smaller designers who sell their clothing on ModCloth will be able to sell their products on Jet.com.

Walmart purchased Jet.com for $3 billion last August. Jet.com was Amazon's biggest competitor, and Walmart has used its e-commerce muscle to compete more with the tech giant. Amazon, at the same time, has moved more into fashion with projects like its own line of athleisure apparel.