The news: Walmart sold direct-to-consumer (D2C) menswear brand Bonobos to retailer Express and brand management company WHP Global for $75 million, per a press release.
Walmart recalibrates: Bonobos was part of a wave of D2C acquisitions Walmart made to grow its ecommerce business and push back against Amazon dominance. But the company struggled to integrate those brands into the rest of its assortment, creating dissonance with shoppers and limiting their growth potential.
Express looks for growth: The acquisition makes perfect sense from Express’ perspective as the company looks to avoid delisting from the New York Stock Exchange and revitalize slumping sales.
The bigger picture: Walmart’s shift away from D2C reflects the challenges digitally native D2C brands are facing as funding opportunities dry up and acquisition costs rise.
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