Walmart to buy Bonobos for $310 mn
- Author: Rita Burton Jun 18, 2017,
Jun 18, 2017, 1:15
"Adding innovators like Andy will continue to help us shape the future of Walmart, " said Lore.
Walmart shares tumbled on over 5% in mid-morning trading, a sign investors are betting Amazon's e-commerce strategy will continue to dominate the industry, its shares jumped about 3%. Bonobos in particular has branched into brick and mortar, devising Bonobos Guideshops that provide opportunities to see, feel and try on clothes; Bonobos now has 35 Guideshops across the United States and in 118 Nordstrom stores and on Nordstrom.com. 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 a year ago. "In fact, Andy will be a great influence on the company, especially in leading our collection of exclusive brands offered online".
After the deal closes, Bonobos founder and CEO Andy Dunn will move over to Walmart's U.S. e-commerce division under Marc Lore, former CEO of Jet.com and current chief of Walmart's online operations, to oversee the company's collection of digitally-native vertical brands.More news: Soon, iPhones will block texts while driving
The Bonobos deal is another example of Wal-Mart's push to rethink its USA e-commerce strategy. In this role, Dunn will create new products for consumers and discover new channels through which they can buy them.
In March 2016, the also bought Hayneedle in March 2016, and Zappos-style shoe retailer ShoeBuy for $70 million from IAC.
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.
"You never know how things are going to be interpreted", Dunn said. ModCloth, a women's clothing and accessories online retailer, is now also owned by Walmart. He will report to Marc Lore, CEO of Walmart.com. "They each have a very distinct voice and I think you can argue that Wal-Mart doesn't have really deep penetration with any of those audiences". "When Walmart acquired Jet, I realized the world is now changing even faster than I thought".