Trans World Entertainment Corp. buys Etailz for $75 million
October 19, 2016 01:23 PM
Trans World Entertainment Corp. acquired web merchant and vendor Etailz Inc. for $75 million this week.
Etailz, No. 267 in the Internet Retailer 2016 Top 500 Guide, owns and operates several retail websites including GreenCupboards.com, EcoMom.com and Vault Electronics.com. Etailz also owns business-to-business software, including Perispect, which allows manufactures to monitor their products on sellers’ websites; and etoolz, which lets retailers identify, source, fulfill and sell products. Perispect identifies which sellers are selling a manufacturer’s product and sends an alert when a seller violates a price policy.
Albany, N.Y.-based Trans World owns 300 F.Y.E. stores, FYE.com and SecondSpin.com, all of which sell media and entertainment goods such as movies and music. F.Y.E. is No. 733 in the Internet Retailer 2016 Top 1000 Guide, and did an Internet Retailer-estimated $13.5 million online sales in 2015 according to Top500Guide.com.
Etailz CEO Josh Neblett says the company will continue to operate all of its entities and remain headquartered in Spokane, Wash. The plan is that under one corporate umbrella, Etailz could potentially sell its products in F.Y.E. stores, and Etailz’s technology can accelerated F.Y.E. online sales. The two retailers now have combined assets of direct e-commerce sales, marketplace sales and physical store sales.
“This acquisition unlocks a unique opportunity for our two companies to engage, compete and thrive as a true omnichannel retailer,” says Mike Feurer, Trans World’s president and chief executive officer in a release announcing the acquisition.
Etailz had $93.3 million in 2015 web sales, and was profitable, Neblett says. Etailz’s revenue was $116 million for the trailing unaudited 12-month period ending September 30, 2016, a 40% increase over the prior 12-month period, according to the release announcing the acquisition. The majority of its revenue stems from its retail sales, but the technology is what makes Etailz successful, Neblett says.
“We’re at the core a retailer, and the leaders of tomorrow in retail will be the best technology companies, and with that belief, we invest heavily in technology to be a better retailer,” Neblett says.