As the world’s largest retailer, there’s not many corners of the market that Walmart doesn’t cater to, with a diverse selection of consumers regularly handing over their hard-earned dollars.
Yet Wal-Mart Inc. isnt resting on its laurels, as evidenced by their supposed upcoming takeover of men’s clothing retailer Bonobos. The deal is reported to be close to being finalised, and would see Walmart purchasing the high-end retailer for around $300 million dollars.
The move certainly looks to be a shrewd one, with sources close to the deal saying that Walmart is hoping to attract a key demographic to their online store in the shape of wealthier customers looking for high-end clothing brands.
They also hope the acquisition will pave the way for additional brands of high repute to follow suit and add their lines to the Walmart website, offering a diverse selection of clothing ranging from affordable brands to high-end, luxury lines.
It’s part of an on-going trend for the retail giant, with the upcoming purchase representing the fourth takeover of online-specialist retailers in the past year.
September saw the company make a $3.3 billion purchase of discount online retailer Jet.com, followed by the acquisition online shoe retailers ShoeBuy and outdoor specialists Moosejaw in January and February respectively.
Walmart has embarked on an ambitious strategy to take on e-commerce behemoth Amazon, hence their continued interest in various online retail specialists.
The $300 million valuation of Bonobos was recently determined in 2014, and should the deal go through it would represent on the costlier purchases Walmart has made in recent years.
Bonobos was first founded as an online retailer in 2007 and made a name for itself by targeting fashion-forward male consumers. By 2011 they had already opened their first physical site, with over two dozen now in operation.
These stores are quite innovative as they do not provide stock on-site, rather allowing customers the chance to try on various products before ordering them online and mailing them directly. Having started off providing formal clothing for athletically minded males, the company diversified its product range to include suits, shirts, accessories and outerwear.
Once the deal goes through, it is believed that Bonobos founder and current CEO Andy Dunn would retain his position at the company, much like the CEO’s of previous acquisitions have.
It looks to be a shrewd investment from Walmart, as Bonobos is a shining example of innovative strategies that produced growing sales in the e-commerce market, an area where many traditional retailers have struggled to adapt.
Now Walmart will have an exceptional range of products for their online menswear lines, helping to attract a wealthier consumer base that will likely benefit their attempts to close the gap with rivals Amazon.
