Walmart In Talks To Buy Bonobos To Attract Wealthier Shoppers, Boost Online Offerings
Wal-Mart Stores Inc. is looking into buying men’s clothing retailer Bonobos to build its online offerings and attract more affluent shoppers.
People familiar with the matter said Walmart is thinking about spending around $300M on the possible takeover, the Wall Street Journal reports. The deal would mark Walmart’s fourth takeover of an online-focused retailer since its $3.3B acquisition of Jet.com last September.
More recently, Walmart launched an investment arm to fund e-commerce innovation and bought online women’s apparel company ModCloth. Walmart CEO Doug McMillon said product assortment concerns are driving many of these acquisitions, especially since some suppliers are hesitant to sell on Walmart’s platform.
Bonobos produces its own clothing line targeting fashion-forward men and sells all of its clothes online. The company operates several “guideshops,” where customers can try on clothes, but all purchases still need to be made online.