WAL­MART TO AC­QUIRE BONOBOS; AP­POINT ANDY DUNN TO OVER­SEE EX­CLU­SIVE CON­SUMER BRANDS OF­FERED ON­LINE

Images Retail - - NEWSMAKERS INTERNATIONAL -

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.

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