Walmart is acquiring fashion start-up brands in an effort to compete against Amazon. According to Glossy, the most recent rumor revolves around Walmart’s attempts to purchase fashion retailer Bonobos for around $300 million. Bonobos has established itself as a unique brand that sells upscale yet affordably priced suits. The downside to the purchase of a company like Bonobos is the damage it could have on the brand’s reputation and its potential to push loyal customers away.
In order to make this a successful merger, Walmart must distance themselves enough to give Bonobos the appearance of an independent and unchanged company. Vivaldi Consultant Emily Kahn offered her thoughts on the acquisition in Glossy’s article: “A loyal customer base is questioning the significance of the brand now that it has ‘sold out’ to Walmart. It’s too soon to tell what impact the acquisitions will have on sales, but speculation is that it is not looking good.”