Bonobos was founded in New York in 2007, and at the time, it used to sell simple Chinos online. Today, the company has expanded to offer shirts, suits, other mens’ wear, and accessories. Bonobos also opened a number of stores in different locations as well as boutiques in Nordstrom department stores.
Despite being a traditional retail store, Bonobos maintained and increased its online sales year after year and also added a twist to the on-site sales, where the customers are fitted in the stores but the items are delivered to their homes. Bonobos offered generous shipping and return policies and provided brilliant customer service. These were the key factors that ignited Walmart’s interest in the fashion brand.
The deal was sealed as another move in the game against Amazon, which is going to purchase the upscale grocer Whole Foods for $13.4 billion.
Walmart has been working on revamping its online structure and in this process, acquired brands such as Jet.com for $3.3 billion and ModCloth and Shoebuy.com for $166 million. The founder of Jet – Marc Lore – has been appointed to head the e-commerce division in the U.S. and has been given a mandate to scale quickly.
Walmart’s acquiring of brands is not just a strategy to have multiple vendors, but also to acquire their methods, techniques, and existing customer base. The strategy is then to expand by using Walmart’s resources.
“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. Adding innovators like Andy will continue to help us shape the future of Walmart and the future of retail. I’m thrilled to welcome Andy and the entire Bonobos team. They’ve created an amazing product and customer experience, and that will not change. In fact, Andy will be a great influence on the company, especially in leading our collection of exclusive brands offered online,” said Lore.
Megha Shah for TechFunnel.com