Wal-Mart to buy Bonobos for $310 mln

"We're seeing momentum in the business as we expand our value proposition with customers and it's incredible to see how fast we're moving", Marc Lore, Wal-Mart's USA e-commerce chief, said in a statement.

Amazon's bet on the organic grocer will help the company better compete against Walmart-which is now the leading grocer -beating out competitors like Safeway (SWY) and Kroger (KR)-according to a 2015 Consumer Report that says the retailer captures about 25% of the grocery market in the US, up from around 7% in 2002.

Walmart today announced it has entered an agreement to acquire Bonobos, Inc.

But Walmart's announcement came just minutes after Amazon shocked the retail world by announcing its $13.7 billion purchase of Whole Foods.

Walmart is reportedly planning to offer Bonobos fashions via its Jet.com division, which was also recently acquired, and "possibly" through other Walmart brands in a "variety of countries over time".

Walmart shares tumbled on over 5% in mid-morning trading, a sign investors are betting Amazon's e-commerce strategy will continue to dominate the industry, its shares jumped about 3%.

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Customers expressed their dismay on social media, calling the potential acquisition "brand suicide" and threatening to never shop at Bonobos again if it's acquired by Walmart.

Jet.com, an e-commerce company, for $3 billion August 8. "In fact, Andy will be a great influence on the company, especially in leading our collection of exclusive brands offered online". The retail giant will buy the men's e-commerce site to join its growing roster of online brands.

Bonobos launched as a menswear brand online in 2007, expanding into brick and mortar retail in 2011 and partnering with Nordstrom in 2012.

"We began Bonobos ten years ago to give men a completely different product and shopping experience: better fitting, higher-quality clothing, in new and imaginative ways". Women's online retailer ModCloth drew a similar negative reaction after it was snapped up by Walmart earlier this year.

"You never know how things are going to be interpreted", Dunn said. The retailer also has rapidly expanded its online assortment to more than 50 million items as well. "They have access to brands, buying teams ... they have merchants and software engineers that might not move to Bentonville or Silicon Valley", he said. Bonobos CEO and founder Andy Dunn will report to Marc Lore, the CEO of Walmart's United States online operations.

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