June 17 (UPI) — Walmart Stores Inc. announced Friday it will acquire online menswear retailer Bonobos for $310 million.
In addition to its website, Bonobos has 35 brick-and-mortar locations under the name Guideshops in the United States. Its market strategy differs from that of Walmart, Bonobos CEO Andy Dunn said in a statement Friday.
“We began Bonobos 10 years ago to give men a completely different product and shopping experience: better fitting, higher quality clothing, in new and imaginative ways. That will always remain our mission.”
The acquisition is part of a broad Walmart plan to enter niche areas on its Jet.com website where its brand is not strong, USA Today said. In March it bought ModCloth, an online retailer of women’s vintage-inspired clothing.
The announcement came on the same day Walmart rival Amazon said it acquired Whole Foods Market for $13.7 billion. It sent stock prices of many grocery chains downward; Walmart shares were down 5.2 percent in early trading.
Dunn will remain Bonobos CEO and will oversee Walmart’s other online brands.