Walmart to acquire online men's clothing retailer Bonobos
Jun 18 2017
Rumors had been circulating of the deal between Bonobos and Walmart for a while, and as predicted, this in part is a way to bring Andy Dunn, who had founded and was leading Bonobos, into a wider leadership role at Walmart running all of its fashion and related lifestyle operations. Instead, it will be available on Jet.com, the online marketplace Walmart recently bought for $3 billion. Walmart's decision to buy Bonobos may have been motivated by a desire to attract new customers in niche areas where the retail giant is not as strong, MSN reports. You may think that the $5.5 trillion U.S. retail industry has room for everyone to share, but Amazon and Walmart look ready to fight for every last morsel. Two months later, Walmart scooped up Moosejaw, an online outdoor gear and clothing retailer. According to Macquarie Research, Amazon already accounts for 50% of all consumer retail spending online, and with its Whole Foods acquisition Amazon seems to be aiming right for Walmart's heart, as groceries account for half of Wal-Mart's $486 billion in revenue. The ShoeBuy acquisition was about $70 million, and Moosejaw was purchased for about $51 million.
The acquisition, which is subject to regulatory approval, is expected to close toward the end of the second quarter or the beginning of the third quarter of this fiscal year. "In fact, Andy will be a great influence on the company, especially in leading our collection of exclusive brands offered online". That means that brands that may want to sell through Wal-Mart have enhanced opportunities too, with options to sell through one site or another (or more), Jariwala said. "With our model proven, we now want to become the market leader in all of premium menswear", Dunn said. In a statement, Walmart CEO Marc Lore insists nothing about Bonobos will change, other than you may soon see its products offered through Jet and Walmart's other "digitally native vertical brands".
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. They fit really well, and I don't want to buy them from Walmart. These are brands born online, and owned from design through distribution.
Always one step ahead and ever the big brother, Amazon beat Walmart to its merger announcement by nine minutes, and by that time, Walmart stock had already plunged 4 percent.