Part of what Walmart is paying for, though, is the expertise of Bonobos' CEO Andy Dunn, who will now oversee Walmart's digital brands. In August, it acquired the online marketplace, Jet, for $3 billion and made that company's top executive, Marc Lore, the CEO of e-commerce for Walmart in the U.S. According to the press release, Walmart saw a 63 percent growth in US -based e-commerce sales last quarter, although a majority of that was from organic growth through the company's own website.
But after sitting down with the teams from Walmart and Jet.com and hearing their vision for Bonobos, "my mind exploded", Dunn wrote. A fact that has not escaped the notice of Walmart, one of the biggest retailers in the U.S. Bonobos launched online in 2007, and opened its first shop in 2011.
"Adding innovators like Andy will continue to help us shape the future of Wal-Mart", Lore said. Its market strategy differs from that of Walmart, Bonobos CEO Andy Dunn said in a statement Friday. Now, he says the company can be "transparent" about what will happen - that product quality, design, and customer service will remain unchanged. The sector, which had surged 17.4 percent in 2017, is on track for its biggest weekly decline since June a year ago as investors booked profits amid worries of stretched valuations.Booz Allen plunged 18.6 percent to $31.99 after the consultancy firm said the U.S. Department of Justice was investigating the company for some of the ways it charged the government for services and accounted for costs.
Both moves were viewed by many as substantial steps taken to compete more adeptly against Amazon.
Early stage investors in the company such as Accel, Lightspeed, and Forerunner Ventures may have a blended valuation much lower than the final private round, so may have had a "base hit" return scenario of perhaps 2x their combined investment. Walmart has since bought clothing seller ModCloth, footwear retailer ShoeBuy.com and outdoor gear seller Moosejaw. 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. And for those who argue that this hurt's Bonobos' brand, Dunn tells the New York Times that since rumors of this deal surfaced on Recode in April his brand's growth rate hasn't slowed down. And it's not likely to, Kelly-Jo Sands, EVP of marketing technology at marketing firm Ansira, told Retail Dive.