June 20, 2017
Walmart acquiring Bonobos. In which Nordstrom invested in 2012. After buying Jet.com last year, followed by ModCloth, MooseJaw, and ShoeBuy. Walmart's on a roll.
Some of the high-end men's retailer's customers are none too happy about it, with one tweeting "I won't go to Walmart for my clothing". From another: "Bonobos is now no longer cool." Apparently, "hip, young, urban, fashion-conscious men" willing to pay $100 to $1,000 are unwilling to be identified among Walmart's much broader audience, LOL.
It reminds me of an always unkind, now politically-incorrect comment bikers used to make about riding a particular imported motorcycle (that I won't repeat in full), that ended with "It feels good till somone you know sees you."
One of Bonobos' founders - Brian Spaly - left Bonobos to start Trunk Club (another men's clothing brand), and sold that to Nordstrom's in 2014, while the other - Andy Dunn, Bonobos' CEO - said he wasn't looking for a buyout (like his former Stanford classmate). The quote (in 2015) was, "Call me crazy, but I'm hoping we can build something standalone."
And now, Walmart's buying Bonobos, which could "catapult Bonobos' brand awareness" according to one analyst", noting that the strategic move give Walmart "a brand with loyal customers, premium price points, and expertise in a differentiated niche."
Maybe it will. But for now, "the twittersphere" is going nuts.
Nordstrom - which bought Brian Spaly's Trunk Club in 2014 - is looking at going private ".
"Same-store sales" fell almost 3% in the first quarter of the year (from 2016's first quarter), even while its online sales and its off-price Nordstrom Rack stores helped it do better recently than other department stores. Nordstrom's was getting a LOT of press over the last 6-8 months. If and how all that press led to that decline (and the family's desire to get it out of the public market) is unknown.
In any event, the Nordstrom family will need a partner to avoid adding to the company debt unless they self-finance the move.
Of course, they could always sell what they bought in 2014 (which - to anybody who has spent much time in big cities back east - brings up visions of a street hustler with his "mobile department store" in his trunk).
Luxury fashion brands, "one [of]the last dependable categories" for big magazine ad spending, are shifting ad dollars to digital. "High-end" luxury companies are still budgeting for print (though, however small, it's declining, even there), but "the more accessible 'broad luxury'" items - cars, cosmetics, and perfumes - already spend 30% of budgets on digital marketing, and plan to increase that steadily.
And social media exposure. Spreading their messages organically through social media accounts.
The only thing they seem to be missing (at least, it's unmentioned in any of Business Insider's referenced articles; h/t), is WiFi.
Follow The Data - April 11, 2017 Gather The Data - April 18, 2017 The_Right_WiFi_=_REVENUE$ - April 25, 2017 DATA Makes Business Blossom - May 2, 2017 A New Age In Free WiFi - May 9, 2017 WiFi Reported Dead - May 16, 2017 WiFi: Growing By Leaps & Bounds - May 23, 2017 WiFi: Analytics Offer Opportunities - May 30, 2017 Killing the Mall - June 6, 2017 Bringing A Knife To A Gunfight - June 13, 2017 MONETIZE YOUR WIFI - June 20, 2017
Certain combinations, chocolate and peanut butter, wine and cheese, or flowers and candy, just fit the description "a match made in heaven". Now you can add FREE WIFI and Social Connection to that list.
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