The battle between retail giants Wal-Mart Stores (NYSE:WMT) and Amazon (NASDAQ:AMZN) continues unabated as Wal-Mart doubles down on its flurry of company acquisitions meant to strengthen its online position. Mooosejaw.com is the most recent addition to Wal-Mart's standalone Internet offerings, including Jet.com, Shoebuy and Hayneedle. Moosejaw does the bulk of its business online and currently has 10 brick-and-mortar outlets.
With its purchase of Moosejaw for $51 million, Wal-Mart's presence in the sporting goods and activewear arena will be greater than Amazon's. The outdoor recreation retailer is experiencing rapid growth while similar companies have not been successful lately. Gander Mountain is close to filing for bankruptcy. Eastern Mountain Sports has already filed for bankruptcy after its parent company Sports Authority could not find a buyer. Liquidation began in May 2016. With this buyout, Wal-Mart is vying to attract and keep new customers.
Wal-Mart will benefit from Moosejaw's 400-plus brands and extensive selection of outdoor products, including The North Face, Arc'teryx, Marmot and Patagonia among others. It also offers gear for snow sports, camping, hiking, climbing, biking, swimming and yoga. Moosejaw is known for its quirky nature and social media marketing, which is not one of Wal-Mart's strengths. Wal-Mart is hoping that Moosejaw's following of millennials will look to Wal-Mart for their other needs.
Compared to the $3 billion Wal-Mart paid for Jet.com, Moosejaw was a bargain. Regarding the purchase, Wal-Mart spokesman Ravi Jariwala said,
"We gain the experience of another well-established e-commerce player in the active outdoor category." Allowing Hayneeedle to operate independently was beneficial for Jet.com, and Wal-Mart is planning to replicate that model with Moosejaw.
Moosejaw CEO Eoin Comerford said that it was thrilling to join Wal-Mart's e-commerce team and that Moosejaw was anticipating its chance to lead the outdoor vertical across Wal-Mart's online presence.