In a strategic move to get rid of their clearance, ModCloth has launched a new online outlet store to get rid of their summer clearance. The launch was spearheaded by the Walmart owned brand's merchandising, IT, and market teams. The new Mod Outlet has launched with 1200 SKUs from ModCloth's full-price inventory, with many items selling out quickly. The news was reported by Retail Dive.
The outlet officially opened earlier this month on July 7 with no formal announcement, but there was advertising done through social media channels. The store will operate year round, but its main points of focus will be end of summer and end of winter clearance sales.
ModCloth was originally an e-commerce only company until it was purchased by Walmart in 2017. Since then, ModCloth has expanded into showroom-style FitShops. ModCloth was folded into Jet, another e-commerce acquisition by Walmart, but Jet has been on the decline over the past several years. Walmart is expecting a 1 billion dollar loss from their e-commerce operations and is reevaluating their business model.