Bonobos to Sell on Jet.com

Bonobos to Sell on Jet.com

On Friday morning, Amazon announced that it purchased Whole Foods for $13.4 billion with every intention to transfigure the future of the entire food industry. The very same day, Wal-Mart went public with its $310 million dollar deal to acquire Bonobos, a men’s fashion company headquartered in New York City. There has been an ongoing war between Amazon and Wal-Mart, so naturally, anything successful one company does is regarded as a challenge to the other.
Wal-Mart is the world’s biggest physical retailer, but has been searching for ways to expand its e-commerce business in order to keep up with its competitor. Fortunately, Bonobos is primarily an e-commerce driven clothing company which is exactly what Wal-Mart needs to target younger users.
On average, a casual shirt from Bonobos costs around $88, the chinos as well as the dressed pants are priced at $98, and their denim sells for $138. Wal-Mart isn’t exactly a corporation dominating in the luxury fashion industry with high-end labels, so buyers are concerned that this arrangement could potentially degrade Bonobos as a company. However, the apparel will be sold exclusively on Jet.com and will not be available for purchase in Wal-Mart store locations which should prevent the brand from losing any of its value.
Wal-Mart is moving at a fast pace this year and is not planning to slow down anytime soon. They have a reputation of being super competitive which has worked in their favor when considering their recent million dollar deals and $3.3 billion dollar Jet.com deal. So what’s up next for Wal-Mart? Almost nothing seems out of reach as they continue to strategize their way up the ladder to the top of the e-commerce world.

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