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News Worms


Walmart To Acquire Online Men's Clothing Retailer Bonobos

Walmart To Acquire Online Men's Clothing Retailer Bonobos

Bentonville, Ark. -based Walmart operates 11,723 stores under 59 banners in 28 countries, and ecommerce websites in 11 countries.

Many of these had been fuelled by its acquisition of Jet.com, which it acquired in 2016 for $3 billion.

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 launched as a menswear brand online in 2007, expanding into brick and mortar retail in 2011 and partnering with Nordstrom in 2012. "We are excited about applying all that we have learned to help shepherd in the next era of retail".

According to Lore, Bonobos has created not only a great line of products but also offers an outstanding "customer experience".

Wal-Mart's shares were down about 6 percent at $74.43 in morning trading on Friday, after online rival Amazon.com Inc said it would buy upmarket grocer Whole Foods Market. The ShoeBuy acquisition was about $70 million, and Moosejaw was purchased for about $51 million.

The transaction is expected to close toward the end of the second quarter or the beginning of the third quarter of this fiscal year, the companies said. Even as other fashion outlets like J. Crew have seen diminishing returns of late, Bonobos is one of the few brands that continues to grow-around 30 percent year over year, Recode claims-by offering fast, no-hassle shipping and free returns, and making some pretty damn good trousers. That means that brands that may want to sell through Wal-Mart have enhanced opportunities too, with options to sell through one site or another (or more), Jariwala said. That will always remain our mission. ModCloth, a women's clothing and accessories online retailer, is now also owned by Walmart. It's the latest and most expensive in a series of relatively small apparel acquisitions made by Walmart in the a year ago, including Modcloth, ShoeBuy.com, and the outdoor e-tailer Moosejaw.

"What Moosejaw, ModCloth, Bonobos all have in common is not only that they are apparel retailers, but they have very authentic voices with a particular group", said Laura Kennedy, an analyst with research firm Kantar Retail. "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. They fit really well, and I don't want to buy them from Walmart.

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