Markets

Walmart Buying Bonobos For $310 Million In Cash

Walmart Buying Bonobos For $310 Million In Cash

Bonobos is facing backlash after news broke Friday that the brand will be acquired by Walmart, but the founder isn't scared of criticism killing the menswear brand.

"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", Lore said. You may think that the $5.5 trillion U.S. retail industry has room for everyone to share, but Amazon and Walmart look ready to fight for every last morsel.

"That will enhance the customer experience for our existing customers, " he said, while Walmart "can help the business of the companies that are new to our e-commerce family through synergies, through efficiencies in cost of goods and shipping rates".

The acquisition, announced Friday morning, was quickly overshadowed by Amazon's surprising move to acquire Whole Foods Market for $13.7 billion in cash.

"Apparel and accessories are now the number one category for digital commerce, " Ravi Jariwala, a Walmart spokesman, said in an interview prior to the Bonobos announcement. Under the new deal, Bonobos clothing will not, as of yet, be sold in Walmart stores; it's not clear yet what will happen to the brand's current presence in Nordstrom or Bonobos' own brick-and-mortar locations, if anything.

It appears Walmart's emphasis on clothing and e-commerce does little to impress investors against Amazon's technological gains and expansion into new industries, such as its latest grocery play. Walmart purchased Jet, an online-only retailer, for $3 billion last August. Even as other fashion outlets like J. Crew have seen diminishing returns of late, Bonobos is one of the few brands that continues to grow-around 30 percent year over year, Recode claims-by offering fast, no-hassle shipping and free returns, and making some pretty damn good trousers.

The Bonobos deal is another example of Wal-Mart's push to rethink its US e-commerce strategy. Women's online retailer ModCloth drew a similar negative reaction after it was snapped up by Walmart earlier this year. Since then, Walmart has also acquired ModCloth, MooseJaw, and ShoeBuy. "That will always remain our mission", Dunn, who will oversee Walmart's collection of "digitally-native vertical brands", said in a statement. The retailer also has rapidly expanded its online assortment to more than 50 million items as well.

Dunn will remain to oversee the Walmart's collection of digitally-native vertical brands, reporting to US e-commerce chief Marc Lore, according to a Walmart press release.


  • Key takeaways from Attorney General Sessions' testimony

    Sessions confirmed under oath that ex-FBI Director Comey expressed unease about being called in to talk alone with Trump. Martin Heinrich (D-NM), on the same grounds, Heinrich said, "You are obstructing this congressional investigation".
    Central Intelligence Agency  reportedly hacked Wi-Fi routers for years

    Central Intelligence Agency reportedly hacked Wi-Fi routers for years

    The views expressed in these articles are the author's own and do not necessarily reflect Mint Press News editorial policy.
    2 dead in magnitude 6.9 quake near Tajumulco, Guatemala

    2 dead in magnitude 6.9 quake near Tajumulco, Guatemala

    An natural disaster with a magnitude of 6.9 has struck Guatemala, close to the country's border with Mexico. Schools in the affected region have been closed for the day while building inspections are carried out.
  • DUP head: Talks with UK Conservatives going well

    DUP head: Talks with UK Conservatives going well

    Leave campaigner Michael Gove has indicated the Government is ready to pursue a softer Brexit deal and work with Labour to get it through Parliament .
    Pouille to face Feliciano Lopez in Stuttgart Open final

    Pouille to face Feliciano Lopez in Stuttgart Open final

    Spaniard earned the first break point of the match with a return victor and Mischa double faulted to end the match in the worst possible manner.
    911 Call Captures Harrowing Account of Couple Held Hostage — Georgia Prison Escapees

    911 Call Captures Harrowing Account of Couple Held Hostage — Georgia Prison Escapees

    The man says he doesn't know which direction the suspects went because he and his wife were tied up and had just got loose. They were on their stomachs, hands cuffed behind their backs, staring up at more than a dozen law enforcement members.
  • Cosby judge declares mistrial as jury deadlocks again

    Cosby judge declares mistrial as jury deadlocks again

    The news came early for those on the West coast, but reactions began coming in soon after the mistrial announcement. There seems little doubt all this will be rehashed with prosecutors vowing to retry Cosby .

    Golden State Warriors' Game 5 win wraps up highly-watched NBA Finals

    But the big victor after might have been Draymond Green and a T-shirt that pays tribute to the Warriors' 4-1 series win. But during this finals series I've found myself supporting any team that came up against the highly-fancied Warriors.
    Trump gives Pentagon authority to set troop levels in Afghanistan

    Trump gives Pentagon authority to set troop levels in Afghanistan

    He disparaged Obama for withdrawing US troops from Iraq. "We know what the strategy was for the last eight years: Don't lose". McCain said the Trump administration had yet to offer a new strategy different that that of his predecessor Barack Obama .
  • Katy Perry makes Twitter history with 100 million followers

    Katy Perry makes Twitter history with 100 million followers

    Meanwhile, Katy , who joined Twitter in February 2009, thinks she is so popular on Twitter because she writes her own tweets . Twitter celebrated Perry's achievement with a video showcasing some of her most read and retweeted posts .

    Angry Trump decries being target of Russian Federation probe

    Flynn is one of several people connected to Trump who is alleged to have had improper communications with the Kremlin. Clinton would later blame Comey and the Federal Bureau of Investigation for costing her the election.
    Official hopes charges in Flint water case help return trust

    Official hopes charges in Flint water case help return trust

    But the Flint water crisis persists, now in its third year, because of poor leadership from the top of the House of Cards. The head of the MI health department has been charged with involuntary manslaughter in Flint's lead-tainted water crisis.