Walmart Transfers Ownership of Bonobos Brand to WHP Global for $75 Million, Sending it to Express
Walmart Sells DTC Menswear Brand Bonobos for $75 Million
Walmart has announced the sale of its direct-to-consumer (DTC) menswear brand, Bonobos, to brand management firm WHP Global and apparel retailer Express Inc. for a combined $75 million. This sale comes six years after Walmart initially acquired Bonobos for $310 million.
The decision to sell Bonobos reflects a strategic shift by Walmart, as it looks to refocus on core operations and streamline its brand portfolio. Bonobos, it seems, did not fit well within Walmart's broader retail portfolio or deliver the anticipated competitive advantage.
According to Neil Saunders, GlobalData Managing Director, Bonobos is the latest brand to be offloaded, and it is being sold for way under the price Walmart paid for it back in 2017. The substantial price decrease is attributed to challenges faced by Bonobos in scaling profitably under Walmart's ownership and broader market and competitive pressures in the DTC and menswear segments.
Liza Amlani, principal and co-founder of Retail Strategy Group, echoes this sentiment, stating that Walmart was not the right home for Bonobos. She believes that the sale to WHP Global and Express Inc. positions Bonobos for more focused brand revitalization and growth within specialized apparel portfolios better aligned with its identity and target consumers.
Express, which has been grappling with declining sales and tanking shares, sees potential in Bonobos. Its national footprint and omnichannel strategies as a specialty apparel retailer will be helpful to Bonobos as it strives for growth. Both companies acknowledge the need to work hard to move Bonobos out of its niche and to increase awareness and traction with male consumers.
The deal is expected to close in Express' second quarter, subject to customary closing conditions. This acquisition allows Bonobos to share its insights in product, material, and fit with other brands under WHP Global and Express. It also provides Bonobos with an opportunity to leverage Express' resources and distribution network to expand its reach.
This sale marks another step in Walmart's ongoing effort to dismantle its portfolio of e-commerce brands. Shortly after selling Modcloth in 2019, it made cuts to Bonobos' workforce. In 2020, Walmart wound down Jet, and in 2021, it sold Moosejaw to Dick's Sporting Goods.
[1] Saunders, N. (2021). Walmart Sells Bonobos to Brand Management Firm WHP Global and Apparel Retailer Express Inc. for $75 Million. Retrieved from GlobalData Retail Insights. [2] Amlani, L. (2021). Why Walmart Sold Bonobos: A Strategic Decision to Divest a Non-Core, Underperforming Asset. Retrieved from Retail Strategy Group Insights.
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