Bonobos, ModCloth to Be Sold on Jet.com
Last week during an earnings call, Wal-Mart’s executive team shared that the Bonobos and ModCloth brands will soon be sold on Jet.com but not inside brick-and-mortar Wal-Mart stores. “The Jet customer demographic — millennial, urban, higher income — aligns well with the demographics of ModCloth and Bonobos,” said Wal-Mart’s spokesman Randy Hargrove in an interview with Business Insider.
Total Retail's Take: Wal-Mart's acquisitions earlier this year of ModCloth and Bonobos raised some eyebrows as the upscale, digital-centric brands didn't seem to mesh particularly well with the discount brick-and-mortar chain. Well, we got some clarification on that last week as the retailer announced that Bonobos and ModCloth merchandise will only be sold on Jet.com (another e-commerce acquisition for Wal-Mart). Jet, ModCloth and Bonobos tend to attract a younger, more affluent customer base, and Wal-Mart is counting on those digital businesses to grow its customer base. This is the latest move by Wal-Mart as it tries to take e-commerce market share away from Amazon.com, as the two giants battle for millennials’ wallets.