WAL-MART Bought Bonobos For $310 Million

According to the world clothing shoes and hats net, Wal-Mart Stores Inc. (NYSE:WMT)

Today announced $310 million acquisition of the United States

Newly established

Electricity supplier Bonobos Inc. has reached fifth electricity purchase pactions in the past 9 months, hoping to narrow the distance from Amazon Amazon.com Inc. (NASDAQ:AMZN).

However, the deal that Amazon.com Inc. Amazon has also concluded today is much heavier. The world's largest electricity supplier group will spend $13 billion 700 million to buy the high-end grocery retailer Whole Foods Market Inc. (NASDAQ.WFM) full food supermarket, which not only shook the entire retail industry, but also stepped into the core of Wal-Mart Stores Inc. WAL-MART.

The food company creates 56% revenue per year for Wal-Mart Stores Inc. WAL-MART, making it the largest food retailer in the United States.

Wal-Mart Stores Inc. (NYSE:WMT) shares fell 7.1% to 73.29 dollars in the intraday trading on Friday, and the market value evaporated 15 billion dollars, exceeding the acquisition price of Amazon.com Inc. Amazon.

Target, Corp., NYSE:TGT, Taghit, Kroger Co. (NYSE:KR), Tesco PLC (TSCO.L), Tesco and Carrefour SA (TSCO.L), and other supermarket group shares fell sharply.

Amazon.com Inc. (NASDAQ:AMZN) increased by 3.7% to 999.75 dollars at most, which first exceeded $1000 in May 30th and hit a record high of 1016.5 dollars in June 6th.

Whole Foods Market Inc. (NASDAQ.WFM) shares also soared up to $31.4% to $43.45 under the impetus of the 27% acquisition of Amazon.com Inc. Amazon.

Us men's fashion, fashion, electricity supplier, Bonobos entity store

The takeover craze of Wal-Mart Stores Inc. last year began in August last year when it bought M & A, a direct rival of Amazon.com Jet.com, when the world's largest entity retailer paid $3 billion in cash and $300 million in equity for only one year of Jet.com.

Many analysts believe that Wal-Mart Stores Inc., WAL-MART is expensive, but what's more valuable than the website is the innovative pricing system of Jet.com, and the Marc Lore, the founder of the electricity supplier, and the entire electricity and technology talent team led by it.

Wal-Mart Stores Inc. WAL-MART directly asked Marc Lore to become president and CEO of the US electricity supplier. He also operated the three mergers and acquisitions of the group.

In addition, in order to challenge the Prime membership benefits of Amazon.com $99, Marc Lore has launched a free two day delivery service for all customers, and hired star startups, Rent the Runway co founder Jenny Fleiss, to run the newly created business incubator Store No.8.

Marc Lore, at the Code Commerce Shoptalk conference held in Recode in March this year, said Wal-Mart Stores Inc., WAL-MART, has lagged behind in the field of e-commerce, and needs to catch up with it, so it will be very active in mergers and acquisitions.

Starting in January of this year, Shoebuy ($70 million), Moosejaw ($51 million) and Modcloth (paction size between $5100-7000) have been included in the capsule by Wal-Mart Stores Inc. WAL-MART.

So far this year, Marc Lore has spent more than 200 million US dollars to buy start-ups, which will be a wealthy millennial generation who will fight for the military. They usually rarely visit Wal-mart WAL-MART supermarket or walmart.com, which is indeed a long-awaited target audience of WAL-MART Stores Inc..

E-commerce accounts for only about 3% of WAL-MART's Wal-Mart Stores Inc., which expects 20%-30% to grow in the second half of this year.

In the first quarter of the last 2018 fiscal year, the group's US electricity business sales and GMV & amp; Co. achieved 63% and 69% growth respectively, and this was mainly driven by the organic growth of Walmart.com.

Jan Rogers Kniffen, chief executive officer of J. Rogers Kniffen WWE, a retail consultancy, thinks that the size of the start-up company that Wal-Mart Stores Inc. WAL-MART has acquired is too small to have a substantial impact on the group's performance.

Howard Davidowitz, chairman of retail consultancy and investment banking company Davidowitz & Associates Inc., also pointed out that the group's strategy of raising market share through mergers and acquisitions has been unsuccessful. Over the past 5 years, more than 15 start-ups have joined the group except Jet.com, and Marc Lore is only continuing the failure strategy.

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At the same time, Amazon.com Inc. is the largest apparel and shoe line retailer in the US, with sales of $13 billion in fiscal 2016, and 45% in the past 5 years. In the next 4 years, Euromonitor and Forrester Research predict that the group's share in the US apparel market will double.

Data from Scrape Hero, a network data service provider, showed that in December and January, 600 thousand new products were added to the e-commerce channels of Wal-Mart Stores Inc., WAL-MART, and SKU, which increased SKU to 16 million 900 thousand, becoming the second largest online retailer in the United States by SKU, but only 4.7% of Amazon.com in January with SKU SKU 256 million 900 thousand.

According to ReCode, Bonobos Inc., which was founded in 2007, earned between $1-1.5 billion and has raised US $127 million. Investors include Accel Partners, Coppel Capital, Lightspeed Venture Partners and Nodes Tron, a luxury department store retailer.

It is reported that the electricity supplier is close to profit or has recorded a slight profit. The founder and CEO Andy Dunn originally intended to sell a valuation of $400 million.

Bonobos Inc. initially monopolized trousers and other trousers, and then expanded rapidly to products such as tops, shirts and suits. Now it is also available for sportswear and golf.

In recent years, Andy Dunn Inc. has opened the entity channel for Bonobos Inc., which has been stationed in the Nordstrom Inc. Nord st long department store in 2012.

Wal-Mart Stores Inc. WAL-MART announced that Andy Dunn will be appointed as the senior vice president of the digital consumer brand of the US electricity supplier business, so that he can lead the group's series of digital vertical brands. He has to report to Marc Lore.

Andy Dunn said in today's press release: "ten years ago, we started Bonobos to provide men with tailored and better quality clothing in a completely new and imaginative way, bringing such a distinctive product and shopping experience. This will always be our task."

However, Bonobos Inc. loyal customers do not buy it. Just like the netizens who have threatened to boycott the Modcloth when they were bought, these people usually pride themselves on the pursuit of independent brands and are extremely disgusted with the operation of large enterprises, and are afraid of being degraded by "wal! Ma!"

On the Twitter twitter account of Bonobos, some netizens said "no longer can support Bonobos". Others think that "Bonobos is not cool from now on". Others point out that Bonobos does not know who its customers are.

It is true that Wal-Mart Stores Inc. WAL-MART has little intersect with Bonobos customers. The former sells men's clothing at a price of $10-30, while the latter is priced at a minimum price of $68 for a plain Polo shirt or shorts, and a suit can cost up to 1000 dollars.

Analysts believe that the two sides can complement each other through the paction to achieve a win-win situation.

Andy Dunn, when receiving a telephone call from a newspaper, revealed that the growth rate of Bonobos has not been affected since the Recode broke out in April. He also believes that "Wal-mart has been misunderstood in some ways".

Andy Dunn revealed in his blog today that the first reaction of Wal-Mart Stores Inc., WAL-MART, when he proposed the takeover, was "no way", but at that time, the situation was that Bonobos Inc. was "one step behind" in order to achieve an independent paction.

He also pointed out that when Wal-Mart Stores Inc. acquired Jet.com, he realized that the world had changed faster than he had imagined, and had always been an important factor for its "mentor" Marc Lore from facilitated Wal-Mart X Jet.com X Bonobos.

"Our model has been proven, and now we hope to become a high-end menswear market leader.

We also have a new mission to extend what we have learned to a broader ecosystem.

Andy Dunn.

Wal-Mart Stores Inc. WAL-MART expects to complete the delivery of Bonobos Inc. at the end of the two quarter or the beginning of the three quarter.

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