Walmart acquires Bonobos Inc for $310 million
Walmart’s recent acquisition of apparel brand Bonobos came as a surprise to many, but feeds into the company’s growing e-commerce market. With over 60 percent growth in e-commerce sales in the US alone, the company is relentlessly working to beat Amazon by offering low cost, affordable prices for a multitude of products and services under its umbrella.
The $310 million acquisition will enable further business growth for Walmart and the creation of new products for consumers, who are able to enjoy free two-day shipping and discounts for picking up orders in store. Launched online in 2007, Bonobos has become one of the leading apparel brands built online in the United States, gaining momentum by attracting the attention of clothing giant Nordstrom back in 2012.
Andy Dunn, founder and CEO of Bonobos will report to Marc Lore, President and CEO of Walmart U.S. eCommerce, and oversee the company’s collection of digitally-native vertical brands. These are brands born online, and owned from design through distribution. The brands will be offered on Jet.com and possibly other Walmart brands in a variety of countries over time, and include Bonobos and recently-acquired ModCloth.
“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. That will always remain our mission,” Dunn said. “We are excited about applying all that we have learned to help shepherd in the next era of retail.”
Dunn himself has personal experience with Amazon, with the company shutting down the business which Lore created, Quidsi, which Amazon previously acquired.