Calgary Herald

Walmart inks $310M deal for online retailer Bonobos

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NEW YO R K Walmart is buying online men’s clothing retailer Bonobos for US$310 million in cash, showing that its appetite for hip clothing brands shows no sign of abating as it looks for ways to gain on Amazon.

It’s a sign of the aggressive direction Walmart is taking since buying Jet.com last year and keeping that company’s founder as head of its online division. Walmart has since bought clothing seller ModCloth, footwear retailer ShoeBuy.com and outdoor gear seller Moosejaw as it focuses on brands appealing to younger shoppers.

Bonobos, which started out selling pants online, caters to male shoppers looking for help putting together a wardrobe.

Targeting Bonobos is a good move for Walmart as it tries to compete with Amazon, which has been quickly expanding its clothing business, says Internet consultant Sucharita Mulpuru-Kodal.

“If you roll up enough of these online startups, you create a meaningful share” of business, she said. She noted that Walmart can learn from these millennial customers.

While Walmart keeps trying to compete against Amazon by pushing harder into online, Amazon announced a bold move into brickand-mortar stores Friday by saying it would buy Whole Foods in a deal valued at about US$13.7 billion.

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.

Bonobos CEO and founder Andy Dunn will report to Marc Lore, the CEO of Walmart’s U.S. online operations.

“Adding innovators like Andy will continue to help us shape the future of Walmart,” said Lore. “They’ve created an amazing product and customer experience, and that will not change.”

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