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Walmart Acquires Bonobos For $310 Million

Walmart Acquires Bonobos For $310 Million

Bonobos is facing backlash after news broke Friday that the brand will be acquired by Walmart, but the founder isn't scared of criticism killing the menswear brand. "Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail".

Bonobos is one of the first apparel brands to launch and build its business primarily online.

But Walmart's announcement came just minutes after Amazon shocked the retail world by announcing its $13.7 billion purchase of Whole Foods.

Bonobos' clothes and accessories will be offered on Wal-Mart's Jet.com, the company said in a statement. They're e-commerce ventures. Though Walmart is America's biggest corporation, bringing in revenue of $485.9 billion during fiscal 2017, it has historically relied too heavily on its brick-and-mortar stores to drive growth and failed to innovate in online shopping.




These new brands help Walmart improve the experience for existing customers and extend its reach to new customers, Ravi Jariwala, senior director of public relations at Walmart.com, told Retail Dive last month.

Bonobos began as an online retailer of khakis, and from there has expanded into other non-khaki clothing items. The company acquired Jet.com, widely seen as a potential Amazon challenger, with its same-day delivery capabilities to a younger, higher-income customer bae, for $3 billion in cash and another $300 million in stock previous year. Other acquisitions Walmart has made under Lore's guidance include online fashion retailer ModCloth, outdoor retailer Moosejaw and Shoebuy, a competitor to Zappos. The startup joins online shoe retailer Shoebuy (a challenge to Amazon's Zappos), online outdoor retailer Moosejaw, and vintage-inspired online women's apparel seller Modcloth in a string of acquisitions by the brick-and-mortar retail giant under Lore since its $3.3 billion purchase of Lore's Jet.com a year ago.

In December, Jet bought online footwear seller ShoeBuy for roughly $70 million.

Bonobos, founded in 2007, generates most of its sales online. ModCloth, a women's clothing and accessories online retailer, is now also owned by Walmart. He will be reporting to Marc Lore, president and CEO of Walmart U.S. eCommerce (who joined with the Jet.com acquisition). "They have access to brands, buying teams ... they have merchants and software engineers that might not move to Bentonville or Silicon Valley", he said.

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