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Walmart is buying Bonobos?

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    #16
    I think that the only way for Wal-Mart to grow at this point was to go higher-end. They tried higher quality stuff in their stores (to compete with Target) it didn't last.

    I could see a Bonobos show room in the front of some Walmarts, next to the bank. They might not mesh the two businesses. It may be like Fiat owning Ferrari.

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      #17
      I dont think it will necessarily alter anything. A parent company is capable of owning ,multiple companies that operate at different levels and with different structures. Every body always assumes that a company buys another one just to mold it into a model of the parent. Most of the time it is the exact opposite. They acquire a company to do one of 2 things. Eliminate competition or expand into a market that the parent company cant penetrate. Walmart will NEVER attract the bonobos target demo. the only way to get some of their money is to buy a company that already has it. Ford owned jaguar and land rover for that reason. Ford had no modern higher end offerings, risked losing target demo if they moved away from their core image and didn't have the luxury clout to get customers to accept them as a luxury brand anyway. So they bought one. Hyundai and Kia ended up as the same company because Hyundai absorbed one of their stiffest rivals. Pepperidge Farm Cookies is owned by Campbells soup. I haven't seen any creamy tomato milanos on the shelf. Anyway, There may be an effect but I wouldnt expect it to be drastic.


      EDIT - replied befroe reading the entire thread. [MENTION=15938]SaWuttae[/MENTION] and [MENTION=14725]Kazoo[/MENTION] said it better with less words.

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        #18
        For me, it has more to do with "Wal-Mart" owning a company I like to shop. I choose not to buy stuff from Wal-Mart because I don't like what they represent. On the other hand, I really like Bonobos clothes. The acquisition forces me to give money to a company I don't care for, or give up on a retailer that I like.

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          #19
          Originally posted by batkins9 View Post
          For me, it has more to do with "Wal-Mart" owning a company I like to shop. I choose not to buy stuff from Wal-Mart because I don't like what they represent. On the other hand, I really like Bonobos clothes. The acquisition forces me to give money to a company I don't care for, or give up on a retailer that I like.
          that I can totally understand and get behind.

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            #20
            Originally posted by ryn View Post
            I could see a Bonobos show room in the front of some Walmarts, next to the bank. They might not mesh the two businesses. It may be like Fiat owning Ferrari.
            I can't imagine that at all. The Bonobos guide shop experience is the opposite of the Walmart experience.

            I can see reasons Walmart could want to own businesses like Bonobos. I can't see why they would try to put Bonobos locations inside Walmarts.

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              #21
              Originally posted by dpark View Post
              I can't imagine that at all. The Bonobos guide shop experience is the opposite of the Walmart experience.

              I can see reasons Walmart could want to own businesses like Bonobos. I can't see why they would try to put Bonobos locations inside Walmarts.
              Real estate, Walmart owns a lot of real estate.

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                #22
                Walmart is trying to avoid becoming the next Kodak. They must keep up with technology, diversify their offerings and expand online. Their real competition over the next decade will be Amazon. I wouldn’t be surprised if they changed the name of the parent company to some more neutral.

                I’ve never shopped at Walmart (and never will), but I have dealt with them at the corporate level working in finance and law. The company has changed dramatically in the last ten years and improved both in sustainability and corporate responsibility. However, they are notoriously cheap at the corporate level. If you travel for Walmart on business you have to stay at a Holiday Inn (or similar). I wouldn’t want to work for them as their cost cutting is relentless.

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                  #23
                  Originally posted by ryn View Post
                  Real estate, Walmart owns a lot of real estate.
                  Sure, but if you plop a Bonobos in a Walmart building, will anyone actually come? You wouldn't expect people to shop at a Tiffany's in the middle of a K-Mart.

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                    #24
                    Originally posted by theplayerking View Post
                    I wouldn’t want to work for them as their cost cutting is relentless.
                    So exactly like Amazon.

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                      #25
                      I don't shop at Bonobos but it seems Wal-Mart can offer a lot of cash for Bonobos to grow and expand. Retail isn't a great sector to be in and if founders can have a pay day then they should do it. Look at all the trouble J. Crew and The Gap (all brands) are having.

                      Hell most threads around here ask when X store is having a sale before they will purchase something. "When is the next SuitSupply sale? I need a staple navy suit." "When is Spier and Mackay's next sale? I need Y." Yea great sector to be in. . .

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                        #26
                        Lol. I'm for that but I'm afraid Bonobos will have to increase there sizes to appeal to Walmart customers. A men small in Walmart is like a large for bonobos.

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                          #27
                          We are a product of conditioning: 1) we know sales are possible so why spend more money when you know you can get it at a discount later 2) in terms of J Crew it's a ratio of cost to quality; at current prices j crew clothes are not justifiable for what you get (lower quality materials even though "branded) but when on sale at 25/30/40% off then they fall within the proper ratio of cost to quality.

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                            #28
                            Originally posted by theplayerking View Post
                            If you travel for Walmart on business you have to stay at a Holiday Inn (or similar). I wouldn’t want to work for them as their cost cutting is relentless.
                            FWP. I want to be you when I grow up. Holiday Inn is my go-to.



                            Sent from my SM-G935V using Tapatalk

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                              #29
                              Wal-Mart usually keeps on the CEO's of the companies it buys, so let's hope the quality doesn't go down the drain because I really like Bonobos.
                              The most successful men’s fashion is conservative with just a hint of rebellion. - Rick Owens

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                                #30
                                Walmart is buying Bonobos?

                                I doubt that Walmart potentially buying Bonobos will drive down the quality of the product. It's more like the diversification of revenue streams rather than expanding to a broader audience. Mergers and acquisitions don't necessarily make a positive or negative impact. Look at Daimler Chrysler. Those Chrysler/Dodge cars didn't get better, and Mercedes didn't go in the toilet. Let's see what happens.
                                Last edited by udub86; April 17, 2017, 07:21 AM.

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