Walmart (NYSE: WMT) has met with beauty box subscription company Birchbox, Recode reported last week. Sources told Recode that Birchbox co-founder and CEO Katia Beauchamp met with Walmart’s U.S. e-commerce chief Marc Lore, but it is not known specifically what was discussed or if Walmart is looking to acquire Birchbox. If so, it would be the latest in a string of recent acquisitions for Walmart that will help strengthen Walmart’s position in online retail.

1. In June, Walmart announced that it agreed to acquire men’s fashion brand Bonobos for $310 million in a cash sale.
2. In March, Walmart acquired ModCloth, an online women’s fashion and accessory retailer, to expand its e-commerce presence and to reach an audience of female millennials. Walmart did not disclose the sales price.
3. In February, Walmart acquired outdoor retailer Moosejaw for $51 million.
4. In January, Jet.com, a recent acquisition of Walmart, acquired Shoebuy, an online footwear, clothing and accessories retailer, from IAC, the parent company for Tinder, Match Group and HomeAdvisor, for approximately $70 million.
5. In August 2016, Walmart acquired Jet.com and Hayneedle, its home furnishings subsidiary, for $3 billion in cash and $300 million in Walmart shares over time.

These recent acquisitions help Walmart compete against Amazon, but acquiring Birchbox would also help it compete against Target in the beauty box space. Target has its own monthly beauty box, available for $7 per month. Birchbox’s beauty box is $10 a month or $110 per year.

According to Recode, Birchbox has venture debt coming due in early 2018, and Birchbox is trying to figure out how to cover it. An acquisition could solve the problem. If Walmart does acquire Birchbox, it is possible that Birchbox could remain independent as Walmart’s other acquisitions like ModCloth have, serving as a complementary site and additional revenue stream for Walmart.

In June, Walmart president and CEO Doug McMillon said at the company’s 47^th annual shareholders’ meeting that the company is building a new Walmart.  

‘We’re going to make shopping with us faster, easier and more enjoyable. We’ll do more than just save customers money and you, our associates, will make the difference,’ McMillon said. ‘Looking ahead, we will compete with technology, but win with people. We will be people-led and tech-empowered.’

Insider Take:

It seems like an acquisition by Walmart would help Birchbox financially, but it is likely that Birchbox is just exploring its options at this stage. And the decision isn’t merely a financial one. If Birchbox agrees to a sale, how will its brand reputation be impacted? How much control, if any, will Walmart and/or Jet.com expect? Will Birchbox be able to retain its independence?

When Bonobos was acquired by Walmart this summer, customers commented online that they were disappointed and said Bonobos was selling out, according to CNN. Birchbox needs to weigh the advantages and disadvantages before it agrees to a sale to any company.