JustFab and ShoeDazzle announced on Wednesday that it had merged in an effort to make the online retailers grow faster. The companies said that it had resulted to a merger as it made a bigger-is-better play in the online market.
According to current co-chief executive of JustFab Adam Goldenberg, ecommerce is all about having mass scale. This would allow online retailers to work with the very best factories, he added.
In the next year, the merged companies would get over USD400 million revenue said ShoeDazzle CEO, Brian Lee. The company has become profitable on an operating basis. ShoeDazzle is directed mainly on shoes while JustFab offers a broader range of accessories, shoes and apparel.
CEO's from both JustFab and ShoeDazzle said that they do not view strong competition from rival Amazon.com. This was despite many online retailers said that they had to face tough competition with the online retail giant. Last year, online retail became a hot sector where venture capitalists ploughed money into numerous startup firms.
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