WALMART TO ACQUIRE BONOBOS; APPOINT ANDY DUNN TO OVERSEE EXCLUSIVE CONSUMER BRANDS OFFERED ONLINE
Walmart announced that it has entered an agreement to acquire Bonobos, one of the leading apparel brands built on the Internet, for US $310 million in cash. Following the closing, Founder and CEO of Bonobos, Andy Dunn, will report to President and CEO of Walmart U.S. E-commerce, Marc Lore. and oversee the company’s collection of digitally-native vertical brands. These are brands born online, and owned from design through distribution. The brands will be offered on Jet.com and possibly 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 of growth and innovation in e-commerce for Walmart. In its most recent quarter, Walmart saw 63 percent growth in U.S. e-commerce sales, the majority coming from organic growth in Walmart.com.
Walmart’s efforts in e-commerce are empowering customers with low prices, more choices and new levels of convenience. Since just the beginning of the year, Walmart.com has rolled out twoday free shipping with no membership fee, an extra discount for picking up orders in stores and the ability to easily reorder online or store purchases. And, Jet.com continues to provide a strong avenue for reaching an urban, millennial customer.