Walmart buys menswear retailer Bonobos

Walmart has snapped up menswear retailer Bonobos for $310 million in cash as it continues to build its online arsenal to try to keep up with Amazon.

Bonobos was founded in 2007 as a pureplay online retailer, initially specialising in trousers.

After broadening its range of menswear, the company opened 35 brick-and-mortar stores it calls ‘Guideshops’ and had plans to expand to 100 locations by 2020.

Founder Andy Dunn, son of an Indian immigrant, was quick to assure customers on social media that the deal would be good for the brand.

“We understand this news might come as a surprise, but know that everything that makes Bonobos the brand that it is will stay the same,” he said in response to a Facebook post which drew far more sad and angry faces than smiles.

“Everything from our product quality to our customer service – and we won’t be selling at Walmart stores or online. We believe that with Walmart’s scale, we’ll be able to create efficiencies and an evolved shopping experience that benefits you, our customers.”

Charles Dimov, director of marketing with OrderDynamics, said the deal reflected how Walmart is stepping up to Amazon.

“The Bonobos acquisition is another peg in the upward direction. Kudos to them for driving retail technology with a strong omnichannel play and presence, and in breaking out of the ‘low price only’ paradigm.”

Dunn will step up into a new role with Walmart, overseeing the company’s collection of digitally-native vertical brands, which also include ShoeBuy and ModCloth.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.