By Monica Nickelsburg. Source: Geekwire.
Walmart is reportedly in the final stages of negotiations to acquire Bonobos, an online fashion retailer aimed at helping men find clothes that fit well.
According to Recode, a deal that would bring Bonobos into Walmart’s e-commerce portfolio for an undisclosed sum is in its final due diligence phase.
Bonobos was founded at Stanford in 2007 as an online-only men’s retailer. In 2011, the New York City-based company began opening brick-and-mortar “Guideshops” where men could get fitted for suits and other clothing and then have their items delivered to their homes a few days later. The unusual model caught the attention of Seattle-based retail giant, Nordstrom, which invested $55 million in 2014 and began carrying Bonobos items in stores.
The rumored acquisition could put a feather in the caps of two Amazon competitors. Nordstrom, which has struggled in its efforts to build a digital product to compete with the e-commerce king, could see a healthy return on its investment and Walmart would secure another win in its quest to reach new customers by acquiring popular brands.
That strategy is spearheaded by Marc Lore, the Jet.com founder who became Walmart’s e-commerce chief after the retail giant acquired the startup for $3.3 billion.
There’s no love lost between Lore and Amazon. He’s been competing with the Seattle company for more than a decade, dating back to his time at the helm of Diapers.com. Bonobos would be the latest in a series of Walmart acquisitions spearheaded by Lore, including ModCloth, ShoeBuy, and others.