It appears Walmart's emphasis on clothing and e-commerce does little to impress investors against Amazon's technological gains and expansion into new industries, such as its latest grocery play. 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 previous year. Walmart's decision to buy Bonobos may have been motivated by a desire to attract new customers in niche areas where the retail giant is not as strong, MSN reports.
Bonobos, founded in 2007, generates most of its sales online. Lore added that Dunn will help "shape the future" of Walmart and the "future of retail". In this role, Dunn will create new products for consumers and discover new channels through which they can buy them.
In December, Jet bought online footwear seller ShoeBuy for roughly $70 million.
Walmart is reportedly planning to offer Bonobos fashions via its Jet.com division, which was also recently acquired, and "possibly" through other Walmart brands in a "variety of countries over time".
The Bonobos deal, announced Friday, is expected to close at the end of the second quarter or the beginning of the third quarter of this fiscal year. 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. "That will always remain our mission", Dunn, who will oversee Walmart's collection of "digitally-native vertical brands", said in a statement. Bonobos CEO and founder Andy Dunn will report to Marc Lore, the CEO of Walmart's U.S. online operations.
Bonobos is a clothing brand focused on delivering great fit, excellent customer experience, and a fun approach to menswear.
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. "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". These are brands born online, and owned from design through distribution.
But after sitting down with the teams from Walmart and Jet.com and hearing their vision for Bonobos, "my mind exploded", Dunn wrote.