Because it’s far easier to take on the Titans of E-Comm if you are one yourself, popular online outlets Need Supply Co. and Totokaelo are now officially a single entity, according to the Business of Fashion.
Called NSTO, BoF reported that, “the new venture… simplifies the relationship between the Richmond, Virginia-based Need Supply Co. and Totokaelo, which has locations in Seattle and New York,” and will hopefully make both more competitive on a “global scale.”
As the story noted, “both retailers are backed by Cormack Capital, the investment firm run by Vancouver-based accessories brand Herschel Supply co-founders Jamie and Lyndon Cormack.” Cormack has had a minority stake in Need Supply for some time, the story said, and the group acquired Totokaelo in 2016.
For those worried that the two retailers could lose their individual flair — totally fair, btw — Need founder Christopher Bossola “emphasized that under NSTO, Need Supply and Totokaelo will retain their distinct identities and that the shared operations platform will provide a strong foundation for growth” and allow them to expand their already-impressive brand portfolios.
Speaking of that growth, the company is planning to invest more in physical retail and scale their in-house labels, and will do so (mostly) out of a new 20,700 HQ in Richmond. “Bossola believes that centralized operations will allow NSTO to double its e-commerce volume,” the story said, also speculating that the centralized platform could lead to NSTO “[acquiring] more retailers.”
However they play it out, NSTO appears to be priming itself for a legitimate run at the Ssense/Farfetch/Net-a-Porter e-comm throne. For our closet’s sake, let’s hope it goes well.
You can read more about it at Business of Fashion.