Walmart is on an acquisition binge to compete with Amazon; but is this good for the consumer?
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
Marc Lore is on a spending spree all to bolster Walmart's new emphasis on e-commerce (Jet.com) spearheaded by a recent "discount program" to encourage BOPIS.
BOPIS stands for buy online pick-up in store. Read on.
ModCloth
In March, Walmart has acquired womenswear site ModCloth. Now it's about to acquire Bonobos, a men's clothing e-retailer that made the transition to brick-and-mortar stores fairly well.
ShoeBuy
Earlier in the year Walmart acquired this Zappos competitor, to bolster its footwear offerings. Walmart is desperate to catch up with Amazon as an e-retailer, although it's late in the game.
It's game-time and price wars are heating up; though Bonobos is a popular brand; and it remains to be seen if this could have a big impact.
Wal-mart's acquisition of Jet.com for a cool $3 Billion last year meant Walmart was finally getting serious about e-commerce. Walmart was unforgivably slow to pivot like the rest of big-box retailers, to protect assets, customer base and market shares against Amazon.
Moosejaw
In February, Walmart acquired outdoor retailer Moosejaw for $51 million. Though will all this be enough to combat Amazon's domination as an e-retailer?
Marc Lore is president and chief executive officer of Walmart eCommerce U.S
Bonobos
With about 9,000 US big-box retail stores closing in 2017, the economy is starting to shed retail jobs at a pace not seeing since 2008. With retailers being snapped up, it doesn't bode well for the future of retail jobs.
Bonobos CEO Andy Dunn and Marc Lore might be smiling, but should consumers be?
Bonobos is an important feather in Walmart's cap however not likely to make much of a dent in their competition with Amazon. Like Frank + Oak, however, Bonobos is indeed a brand with some hype behind it.
When big-box retail giants buy-out those brands we've come to love, it's another signal that the retail apocalypse has begun.
What do you think? With Macy's, Sears and Target all going downhill and retail price wars happening; does the consumer even win?
Read more articles by me and a great team of freelancers at the blog of Star Cloud Services.
I see a few parallels here with the department store consolidation that happened about 10 years ago, that has basically been the kiss of death for department stores - in an attempt to drive efficiencies and drive up profits, they lost what made department stores unique; the community element and local relevance. In much the same way, these smaller brands with highly loyal followers (esp. Mod Cloth and Bonobos) will lose what made them relevant and loved. I definitely think the consumer loses - Mod Cloth and Bonobos consumers were buying into an idea, a well developed brand, and a lifestyle. By nature, a mass retailer can't replicate that.
Senior Lecturer at Universiti Kebangsaan Malaysia ????? (??? ?? ??)
7 年Dear Mr Michael Spencer .. could you shed some light on what would be the answer for the question you've posed in the title: "is this good for the consumer?" Perhaps, there are more choices for the way shopping can be done! But what about the market structure of the e-comm industry in the US? Oligopoly?
Homo sum humani a me nihil alienum puto.
7 年I tried Walmart.com for some purchases I would otherwise make from eBay or Amazon. The majority did not go smoothly.
Custom Art, Handmade custom papercrafts
7 年No. Corporate America needs to be reined in, no one is enforcing anti trust laws
Omni-Channel Retail, Merchandising, Product Development, Customer Experience and Marketing Executive
7 年Companies grow, takeover and sometimes die. It is part of the business life cycle. Some will have a comeback, others not. Amazon is an amazing company and they need some competition to balance the marketplace, so it could be helpful. Gone are the days of retail unless you are a vertical brand that has a lifestyle / product line that is unique. If large digital conglomerates are smart they will acquire from a funding perspective, provide solid infrastructure support , and leave the company culture, branding and product to the founders.