- Prachi Singh |
Walmart said in the company announcement that it has entered an agreement to acquire Bonobos for 310 million dollars in cash. The company added that following the deal closing, Andy Dunn, Founder and CEO of Bonobos will report to Marc Lore, President and CEO of Walmart US ecommerce, and oversee the company’s collection of digitally-native vertical brands.
“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,” said Lore in the statement, adding, “Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail.”
Walmart to boost online sales with Bonobos acquisition
Dunn will look after fashion brands born online, and owned from design through distribution by Walmart. The company said that these brands will be offered on Jet.com and other Walmart brands in a variety of countries over time, and include Bonobos and recently-acquired ModCloth. The acquisition, which is subject to regulatory approval, is expected to close toward the end of the second quarter or the beginning of the third quarter of this fiscal year.
The announcement comes at a time, when in its most recent quarter, Walmart saw 63 percent growth in US ecommerce sales, with the majority coming from organic growth at Walmart.com. The company added that Jet.com also continues to provide a strong avenue for reaching an urban, millennial customer.
Walmart is of the opinion that acquisition of Bonobos and the leadership of Dunn will create more new products for consumers and new ways to buy them.
“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,” added Dunn.
The addition of Bonobos is part of Walmart’s broader ecommerce strategy to enhance the customer value proposition.