Jet has acquired ShoeBuy, an online footwear retailer, through its parent company Walmart, from IAC (InterActiveCorp) for around $70 million. The transaction closed on Dec. 30, 2016. IAC had bought ShoeBuy in January 2006.
Walmart's acquisition of ShoeBuy comes just four months after the giant retailer agreed to acquire Jet.com, in September 2016, for $3.3 billion, the largest amount ever paid for an e-commerce start-up. Walmart's recent moves are in response to the increasing competition from e-commerce players, which has constantly eroded the market share of bricks-and-mortar stores, pushing them to expand their digital reach. More specifically, the acquisition of ShoeBuy is likely part of Walmart's effort to fight competition from Amazon, and notably its online shoe store, Zappos.
ShoeBuy, which is headquartered in Boston, sells more than 800 brands and around one million items including footwear for men, women and kids, as well as clothing and accessories such as handbags and outerwear. ShoeBuy was founded in 1999, as one of the first companies to sell shoes online. Mike Sorabella, ShoeBuy's chief executive, as well as his executive team and the 200 employees of the company will continue to be based in Boston. ShoeBuy will operate as a stand-alone but complementary component to Jet.com.
Jet.com sells a wide assortment of products ranging from electronics to furniture, specialty foods, beauty and household items. The online retailer also carries a smaller range of shoes, clothes and accessories.