Walmart to acquire online men's clothing retailer Bonobos

Lena Tucker
June 18, 2017

Wal-Mart, which also announced a deal to buy online clothing retailer Bonobos for $310 million, dropped 5 percent and weighed the most on the S&P 500 and the Dow.

Bonobos offers Walmart "a brand with loyal customers, premium price points, and expertise in a differentiated niche", Oliver Chen, an analyst at Cowen & Co., wrote in a research note as rumors of the acquisition began to circulate in April. "Your customers are mainly people like me, millennials who shop online so as to avoid giving our dollars.to community-killing super stores", one user wrote on Facebook. In 2012, Bonobos expanded its distribution partnering with Nordstrom, bringing Bonobos apparel into all 118-doors nationwide and to Nordstrom.com. But Bonobos clothing won't be sold on Walmart's website or stores.

Wal-Mart said Bonobos brands will be offered on Jet.com, the online store founded by Lore that Wal-Mart acquired previous year, and "possibly other Walmart brands in a variety of countries over time, and include Bonobos and recently-acquired ModCloth".

Upon completion of the deal, Andy Dunn, founder and CEO of Bonobos will report to Marc Lore, president and CEO of Walmart U.S. eCommerce.

"We believe that with Walmart's scale, we'll be able to create efficiencies and an evolved shopping experience that benefits you, our customers". "Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail". Walmart won't sell Bonobos apparel in its stores, but will continue to offer it on Bonobos.com and possibly on Jet.com. "We also have a new mandate".

"Our company exists as a series of contrarian decisions", Dunn wrote in a blog post on Medium that was published Friday.

The Bonobos team took to Twitter on Friday morning to assure its fans that its product quality, design and customer service will stay the same. For Bonobos, the acquisition by Walmart will help expand its business.

Moosejaw's CEO oversees the outdoor category for both Walmart and Jet.com, Jariwala says, while Sorabella helms the footwear category for the various sites.

For Walmart, the deal marks at least its fourth acquisition of a digital-first retailer since Marc Lore took over as head of e-commerce in the USA last fall - others have included Modcloth and ShoeBuy.

Other reports by AllAboutTopnews

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