Wal-Mart Stores Inc (WMT.N) said on Friday it would buy online men’s fashion retailer Bonobos Inc for $310 million (242.68 million pounds), in its fourth e-commerce deal in under a year, as it seeks to bridge the gap with e-commerce leader Amazon.com Inc (AMZN.O).
However, Wal-Mart’s shares fell 6.5 percent to $73.78 in morning trading after Amazon said it would buy upmarket grocer Whole Foods Market (WFM.O) in a $13.7 billion (10.7 billion pounds) deal.
A slew of other retailers’ shares also fell on the news, including shares of Kroger Co (KR.N), Target Corp (TGT.N) and Europe’s Tesco Plc (TSCO.L) and Carrefour (CARR.PA).
Amazon’s deal to buy Whole Foods comes as Wal-Mart is engaged in a price war with rivals such as Aldi and Kroger in the grocery segment, which makes up about 56 percent of Wal-Mart’s revenue.
Technology news website Recode reported in April that Wal-Mart was in advanced talks to buy Bonobos and that the company generated $100 million to $150 million in annual revenue.
Wal-Mart said Bonobos’s clothes and accessories will be offered on its Jet.com e-commerce website.
The acquisition is expected to close towards the end of the second quarter or the beginning of the third quarter of Wal-Mart’s fiscal year ending January 2018, the company said.
Wal-Mart bought online women’s fashion retailer ModCloth, outdoor clothing and gear retailer Moosejaw and footwear retailer Shoebuy in the first three months of this year.