Published By : 19 Jun 2017 | Published By : QYRESEARCH
In a bid to gain on Amazon, Walmart has announced the acquisition of Bonobos, an online men’s apparel retailer, for a hefty sum of US$310 mn. The retail giant has taken up an aggressive expansion strategy, which started from the acquisition of Jet.com the last year. It has since purchased the clothing vendor ModCloth, footwear seller ShoeBuy.com, and the outdoor gear vendor Moosejaw as its main focus is on the brands that appeal to younger shoppers. Bonobos specifically caters to male shoppers, who are seeking help in creating a wardrobe for themselves.
As Walmart is trying to compete with Amazon, acquiring Bonobos, which has been expanding its clothing business strongly, will prove to be a good move for them, says Sucharita Mulpuru-Kodal, an Internet consultant. “If one roll in enough of these online startups, one can create a significant share of business,” she added. She also noted that Walmart can learn a lot from these millennial consumers.
Bonobos Deal to be Closed by Second Quarter of Current Year
The Bonobos deal, which was announced on June 16, 2017, is anticipated to close at the end of the Q2 or the onset of the Q3 of this financial year. Andy Dunn, CEO and founder - Bonobos, will have to report to Marc Lore, the chief executive officer of the U.S. online operations of Walmart.
While Walmart continues to contest against Amazon by gaining a robust foothold online, Amazon has announced the procurement of Whole Foods for US$13.7 bn in a bold move into the brick-and-mortar business.