Wal-Mart Stores Inc, has announced that it will acquire Bonobos Inc, a New York based online fashion retailer site which designs and sells men’s clothing for $310 million.
Nevertheless, shares of Wal-Mart fell 6.5 percent to $ 73.78 in morning trading after Amazon said it would buy the Whole Foods market in a deal worth $ 13.7 billion.
The news also dropped a lot of other retailers’ shares, including shares of Kroger Co, Target Corp and European Tesco Plc and Carrefour.
Amazon’s purchase of Whole Foods comes a month after the reports claimed that Wal-Mart is engaged in a price war with competitors such as Aldi and Kroger in the grocery store segment, which is about 56 percent of Wal-Mart’s revenue.
In a press release, Wal-Mart said that Bonobos clothing and accessories will be offered on the Jet.com e-commerce website.
It is expected that the transaction will end by the end of the second quarter or the beginning of the third quarter of the fiscal year Wal-Mart, ending in January 2018, the company said.
Wal-Mart bought the online store of women’s clothing ModCloth, outdoor clothing and retail gear Moosejaw and shoe shoes Shoebuy in the first three months of this year.