Retail industry news : Walmart to acquire online apparel retailer Bonobos
Walmart has signed a deal to acquire online apparel company Bonobos for $310 million in an all-cash deal just a day after the retail acquisition news of Amazon acquisition of Whole Foods Market for $13.7 billion.
While Amazon has been looking to make a presence on the physical front, Walmart on the other hand is giving it competition by consolidating its online presence with acquisitions of online retail companies and brands.
Walmart Acquisition of Bonobos News
In a Walmart press release, the retail giant said that Walmart acquisition of Bonobos aligns with the growth and innovation it is going through in the e-commerce segment.
Walmart says that it has seen a growth of 63% in its US online retail sales in its most recent quarter with a majority of it coming from organic growth of its e-commerce site Walmart.com.
In this regard, Walmart recent acquisitions include Jet.com for $3 billion, online furniture retailer Hayneedle for about $90 million as per retail industry reports, online shoe seller Shoebuy.com for $70 million, outdoor retailer Moosejaw for $50 million and online women fashion retailer ModCloth.
Launched as an online apparel store in 2007, Bonobos focuses on men’s clothing and accessories. Four years later after its launch, Bonobos extended offline with the introduction of e-commerce stores named Bonobos Guideshops for personalized, one-to-one service to customers. There are 35 Bonobos Guideshops across the US till date.
Bonobos founder and CEO Andy Dunn on the Walmart acquisition of Bonobos said: “We began Bonobos ten years ago to give men a completely different product and shopping experience: better fitting, higher quality clothing, in new and imaginative ways. That will always remain our mission.
“We are excited about applying all that we have learned to help shepherd in the next era of retail.”
After completion of Walmart acquisition of Bonobos, the latter’s founder and CEO Andy Dunn will work under Walmart U.S. eCommerce president and CEO Marc Lore according to the latest retail news. Bonobos CEO Andy Dunn will handle the collection of digitally-native vertical brands that will be offered on one of Walmart recent acquisition – Jet.com.
The apparel brands that were born online and owned right from design to distribution will also be sold alongside other brands of Walmart possibly like Bobobos and ModCloth in various countries in the course of time.
Commenting on Walmart acquisition of Bonobos, Walmart U.S. eCommerce president and CEO Marc Lore said: “We’re seeing momentum in the business as we expand our value proposition with customers and it’s incredible to see how fast we’re moving.
“Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail. I’m thrilled to welcome Andy and the entire Bonobos team. They’ve created an amazing product and customer experience, and that will not change. In fact, Andy will be a great influence on the company, especially in leading our collection of exclusive brands offered online.”
Walmart acquisition of Bonobos is likely to be completed by the end of the second quarter or at the most early quarter of the current fiscal year, subject to regulatory approval as per a latest retail news report.