Walmart to acquire Bonobos

18 June, 2017, 02:18 | Author: Patty Aguilar

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. "Therefore, if Walmart's play is to acquire Bonobos to broaden its appeal to customers who do not see Walmart as relevant, the negative perceptions associated with the Walmart brand and its inconsistencies with the Bonobos brand mean the strategy is doomed to fail". She noted that Walmart can learn from these millennial customers.

The company has 30 stores where customers can be custom measured for their clothes, and also mini-stores at Nordstrom.

Amazon's bet on the organic grocer will help the company better compete against Walmart-which is now the leading grocer -beating out competitors like Safeway (SWY) and Kroger (KR)-according to a 2015 Consumer Report that says the retailer captures about 25% of the grocery market in the US, up from around 7% in 2002.

But sources previously told Recode that you shouldn't expect to see Bonobos trousers or shirts sold in Walmart stores or on Walmart.com. Dunn will oversee Bonobos and ModCloth, Wal-Mart's collection of digitally-native brands.


"Adding innovators like Andy will continue to help us shape the future of Wal-Mart, and the future of retail", Wal-Mart's Lore said in a statement. "And at the same time these acquisitions do allow us to reach essentially new customers that may have not shopped within our ecosystem in the past". Walmart's efforts in e-commerce are empowering customers with low prices, more choices and new levels of convenience.

"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". It follows an agreement to buy the Moosejaw outdoor-equipment site in February and the women's-apparel seller ModCloth in March. "He and I will now leverage our combined know-how and, with the biggest company in the world behind us, take on creating the leading vertical e-commerce platform".

Analysts have noted that that the acquisition could have major strategic rewards for both Walmart and Bonobos.

But after sitting down with the teams from Walmart and Jet.com and hearing their vision for Bonobos, "my mind exploded", Dunn wrote.

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