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Walmart to buy online apparel brand Bonobos

RBR Staff Writer Published 20 June 2017

Walmart has agreed to acquire online apparel brand Bonobos for $310m in an all-cash deal.

Founded in 2007 as an online apparel store, Bonobos brands offer men’s clothing and accessories.

In 2011, Bonobos extended offline by launching e-commerce stores dubbed Bonobos Guideshops to provide customers with personalized, one-to-one service to customers.

Till date, the company had opened 35 Bonobos Guideshops in the US.

Walmart says that the acquisition of Bonobos is in line with the growth and innovation it is seeing in its e-commerce channel.

According to the retailing giant, a growth of 63% has been witnessed in its online retail sales in the US in its most recent quarter. A majority of that was generated through organic growth in Walmart.com.

Walmart US eCommerce president and CEO Marc Lore said: “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.

“Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail.”

Upon completion of the acquisition, Bonobos founder and CEO Andy Dunn will report to Lore. Dunn will be responsible for Bonobos’ collection of digitally-native vertical brands that will be offered on Jet.com along with other Walmart brands like ModCloth in different countries in the course of time.

Dunn said: “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.

“We are excited about applying all that we have learned to help shepherd in the next era of retail.”

The acquisition is expected to be closed by the end of the second quarter or at the start of the third quarter of the current fiscal year after securing regulatory approval.

Image: Walmart to acquire Bonobos for $310m. Photo: courtesy of Wal-Mart Stores, Inc.