Wal-mart: Can They Succeed In Online Fashion Retail?

According to reports, Wal-Mart is close to acquiring Bonobos for $300 million. If you aren't aware, Bonobos is an online fashion retailer that makes clothes in the same realm as J Crew or Banana Republic. Wal-Mart has acquired several retailers recently, for example: MooseJaw. In my opinion, I think acquiring Bonobos would be a smart move as I think they poised to grow.

Wal-Mart Stores Inc. is in talks to buy men’s clothing retail startup Bonobos Inc. for about $300 million, according to a person familiar with the situation.

Wal-Mart has been on a tear of late, buying e-commerce startups and emerging brands that used the internet to grow. Bonobos would represent Wal-Mart’s latest attempt to build its cachet online. The company acquired Jet.com for $3.3 billion last year in a deal that transformed Wal-Mart’s web operations and brought in a fresh team of e-commerce executives. It followed that by snapping up smaller sites, including outdoor retailer Moosejaw and women’s apparel seller ModCloth, earlier this year.

Do you think this is a good strategy for Wal-Mart?

Reference: Wal-Mart Acquiring Bonobos