Reuters 21 Aug 2013
Online retailers JustFab and ShoeDazzle are making a bigger-is-better play and merging in an effort to grow faster, the companies said Wednesday.
“Ecommerce is all about that mass scale,” said Adam Goldenberg, currently co-chief executive of JustFab. “Having that scale allows us to work with the very best factories.”
The combined companies should have revenue of over $400 million next year, said ShoeDazzle Chief Executive Brian Lee, and become profitable on an operating basis. ShoeDazzle focuses mainly shoes, whereas JustFab sells a broader range including shoes, accessories and apparel.
Many online retailers are feeling the heat from Amazon.com, (AMZN.O) but Goldenberg and Lee said they do not view the Seattle-based giant as a major competitor. That is because they sell their own products that are not available at other retailers, whereas Amazon tends to sell products that are widely available.