Executive Summary

• On Friday, October 12, Walmart announced that it had acquired lingerie and sleepwear retailer Bare Necessities for an undisclosed amount.
• Bare Necessities, founded in 1998, offers more than 100,000 SKUs from more than 160 brands, including an extensive assortment of bras, swimwear, shapewear and sleepwear. Intimates is a category that has been rapidly growing online and has complex sizing and highly specialized products.
• Walmart commented that the acquisition of Bare Necessities fits into its broader acquisition strategy, which includes two types of companies: (1) category leaders; and (2) digital brands that offer products not available anywhere else. Bare Necessities falls under the first category.