Walmart has taken another step to expand its presence in the world of e-commerce with the pending acquisition of Bonobos, a men’s apparel company, for $310 million in cash.
Andy Dunn, founder and CEO of Bonobos, will report to Marc Lore, president and CEO of Walmart U.S. e-commerce. Brands carried on Bonobos will be offered on Jet.com and possibly other Walmart retail brands, the company said.
“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,” said Lore. “Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail.”
According to Walmart, the acquisition of Bonobos comes at a time when the company continues to see strong e-commerce growth. In its most recent quarter, the retailer reported 63% growth in U.S. e-commerce sales, the majority coming from organic growth in Walmart.com. The retailer, in an effort to compete with Amazon, has rolled out several new initiatives including two-day free shipping with no membership fee and discounts to consumers for picking up orders in stores.
The acquisition, which is subject to regulatory approval, is expected to close toward the end of the second quarter or the beginning of the third quarter of this fiscal year.