Expanding its online presence, Wal-Mart Stores Inc. ( WMT ) announced on June 16 it is buying Bonobos Inc. for $310 million.
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. ( JWN ).
The deal adds to the slew of acquisitions the retail giant has made since buying Jet.com for $3.3 billion last September, putting Jet founder Marc Lore at the helm of its e-commerce operations. Other acquisitions Walmart has made under Lore’s guidance include online fashion retailer ModCloth, outdoor retailer Moosejaw and Shoebuy, a competitor to Zappos.
The acquisition is part of Walmart’s broader e-commerce strategy to enhance value for customers. It is also expected to further bolster the company’s e-commerce operations, which saw 63% sales growth in the most recent quarter, in an attempt to compete with Amazon.com Inc. ( AMZN ).
“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,” Lore said.
After the deal closes, Bonobos founder and CEO Andy Dunn will report to Lore and oversee Walmart’s collection of online-centric brands, which include Bonobos and ModCloth. In this role, Dunn will create new products for consumers and discover new channels through which they can buy them.
“We began Bonobos 10 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.”
The deal is expected to close toward the end of the second quarter or beginning of the third quarter of this year.
After the announcement, Walmart shares were down over 6% at $73.75 as Amazon revealed it is buying Whole Foods Market Inc. ( WFM ) for $13.7 billion.
Disclosure: I do not own any stocks mentioned in the article.
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