Published: Sun, June 18, 2017
Money | By Oscar Reynolds

Walmart to acquire online men's clothing retailer Bonobos

Walmart to acquire online men's clothing retailer Bonobos

Global mega-retailer Wal-Mart has reached a deal to buy Bonobos, a men's clothing online retailer, for $310 million in cash, the companies announced.

"Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail", Lore said in a statement. You may think that the $5.5 trillion United States retail industry has room for everyone to share, but Amazon and Walmart look ready to fight for every last morsel. For Bonobos, the acquisition by Walmart will help expand its business. The purchase announcement comes on the heels of news that Amazon is buying Whole Foods for almost $14 billion, also in cash, as previously reported by the Inquisitr. After the acquisition closes, Bonobos founder and Chief Executive Officer Andy Dunn will move into a new role overseeing the company's digital brands. She noted that Walmart can learn from these millennial customers.

Bentonville, Ark. -based Walmart operates 11,723 stores under 59 banners in 28 countries, and ecommerce websites in 11 countries. Walmart purchased Jet, an online-only retailer, for $3 billion last August. "In fact, Andy will be a great influence on the company, especially in leading our collection of exclusive brands offered online".

The deal comes as part of a wider strategy at Walmart, the world's largest physical retailer, to grow its e-commerce business, partly to offset competition from Amazon.

In March, Walmart bought online retailer ModCloth for an undisclosed amount.

"When the idea first presented itself, my immediate thought was no way", he wrote, noting at the time the company was "inches" from a deal that would keep Bonobos independent.

Bononos, a men's clothing brand, launched online in 2007 and quickly expanded offline to open Bonobos Guideshop stores and gained a partnership with Nordstrom Inc.

"Call me insane, but I'm hoping we can build something standalone", Dunn said.

"They've created an awesome product and customer experience, and that will not change", Lore said in the statement. ModCloth, a women's clothing and accessories online retailer, is now also owned by Walmart. They fit really well, and I don't want to buy them from Walmart. Bonobos CEO and founder Andy Dunn will report to Marc Lore, the CEO of Walmart's U.S. online operations.

"Ultimately, it's all just acquiring talent and capabilities to make, Wal-Mart e-commerce as a whole, all of these banners together run better", Kennedy said.

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