Walmart to acquire online men's clothing retailer Bonobos for $310M

Walmart to acquire online men's clothing retailer Bonobos for $310M

"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", Lore said in a statement Friday. "We are excited about applying all that we have learned to help shepherd in the next era of retail".

For the transaction, Citi is serving as financial adviser to Bonobos, with Fenwick & West LLP acting as its legal adviser, while Weil, Gotshal & Manges LLP and Hogan Lovells are serving as legal advisers to Walmart.

But, perhaps more by intent than coincidence Amazon also announced it would be buying Whole Foods for $13.7 billion. Walmart won't sell Bonobos apparel in its stores, but will continue to offer it on Bonobos.com and possibly on Jet.com.

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. And in March, Walmart announced that it had purchased ModCloth, an online seller of women's clothing and accessories that targets customers looking for full sizes.

Jet.com, an e-commerce company, for $3 billion August 8.

The Bonobos founder also released a blog post on Friday in an attempt to convey to customers why he believes that acquisition is a good move for the brand.

The world's biggest retailer has been working aggressively to close the gap with rival Amazon.com Inc under the leadership of Chief Executive Doug McMillon and new e-commerce chief Marc Lore. In this role, Dunn will create new products for consumers and discover new channels through which they can buy them. Customers took to Bonobos' social media pages in droves - and the vast majority were not happy about the deal.

Shortly before Walmart bought Jet, the online retailer had purchased ShoeBuy for about $70 million.

Unlike many startups, Bonobos, founded in 2007 by co-founders Andy Dunn (who in 2015 returned as CEO) and Brian Spaly (who founded Trunk Club and this year left the concierge service, now owned by Nordstrom) generates a profit and enjoys $150 million in annual sales, raising about $127 million to date from investors including Accel Partners, Lightspeed Venture Partners and Nordstrom. The retailer also has rapidly expanded its online assortment to more than 50 million items as well. They fit really well, and I don't want to buy them from Walmart.

Building up Walmart.com was the first step.

Related:

  • Durant planned for this title months ago in picking Warriors

    Durant planned for this title months ago in picking Warriors

    I believe Andrew is shaving already, and he has a driver's license I think, but I can't guarantee it. Durant entered the NBA Finals as an eight-time All-Star, an All-Star Game MVP and an NBA MVP.

    Busy Aisha Tyler says goodbye to 'The Talk' after 6 years

    She brokedown while telling the audience. "Don't cry because it's over, smile because it happened", the tweet read. She did say she plans on coming back as an occasional guest host and to promote her future projects.
    Mattis: Trump authorized military to set troop levels in Afghanistan

    Mattis: Trump authorized military to set troop levels in Afghanistan

    Earlier this year, the Pentagon was considering a request for roughly 3,000 more troops, mainly for training and advising. Bush left office, U.S. troop numbers in Afghanistan totaled about 50,000.
  • Scottish Conservatives want fishing protected as part of Brexit

    Scottish Conservatives want fishing protected as part of Brexit

    It is all about how she can find a way to refloat or rebrand her sinking dream of independence. She says she's listening to the folk of Scotland and so she should.

    Trump Under Investigation For Possible Obstruction Of Justice

    The comments caused quite a stir, and it was soon bolstered by a report from the New York Times . He said he didn't know if Trump obstructed justice, but said it was for Mueller to decide.
    Singer Adele joins vigil for victims of London tower block inferno

    Singer Adele joins vigil for victims of London tower block inferno

    Previously speaking to the Evening Standard about her childhood, Rita said: 'We lived in Earls Court, on the Old Brompton Road. Earlier in the day, Ora revealed that Grenfell Tower was in her "neighbourhood" and used to be one of her childhood haunts.
  • Sensex, Nifty open on flat-to-positive note in early trade

    Sensex, Nifty open on flat-to-positive note in early trade

    However, Tata Steel rose by 3.48 per cent followed by Dr Reddy 3.15 per cent, HDFC 1.83 per cent and Sunpharma 1.58 per cent. The BSE Midcap and Smallcap indices outperformed benchmarks, up 0.2-0.3 percent despite the balanced market breadth.

    Super Mario Odyssey Has Hat-Based Co-op

    Players will be able to fly around, attack enemies and do actions that Mario is not capable of doing, according to IGN . The big thing in Super Mario Odyssey is that Mario can throw Cappy at anyone or anything and possess it.
    Weeks after cancer surgery, Pittsburgh Pirates' Jameson Taillon to start

    Weeks after cancer surgery, Pittsburgh Pirates' Jameson Taillon to start

    RED SOX 6, PHILLIES 5 (11 ) Dustin Pedroia singled home the winning run in the 11th inning to lift host Boston over Philadelphia. Nelson Cruz drove in four runs while Danny Valencia and Mike Zunino each homered as the Mariners snapped a brief two-game skid.
  • Microsoft's New Keyboard Comes with a Hidden Fingerprint Reader

    Microsoft's New Keyboard Comes with a Hidden Fingerprint Reader

    According to the company's official, the new modern keyboard will be available soon and one can buy it while spending $129.99. The highlight of the keyboard is that it comes with a fingerprint scanner that just looks like any other key on the keyboard.
    British PM May faces mounting criticism over London tower block blaze

    British PM May faces mounting criticism over London tower block blaze

    People have lost their lives, people have had their homes destroyed, they have fled for their lives with absolutely nothing". The protesters chanted: "We want justice", "bring them out" and "shame on you".

    Escaped Georgia inmates captured in Tennessee, authorities say

    If you know anything about the whereabouts of Donnie Rowe and Ricky DuBose , they're asking you to call the U.S. The website states that Monica was a Chicago native and had lived in Baldwin County for the past 20 years.

Comments

Other news