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This change in shopping behaviour has taken its toll on physical stores which are going bankrupt at a record rate. Department stores and clothing shops are the hardest hit with almost a quarter of apparel and accessories sales now taking place online. But, with 52% of e-commerce transactions in the UK now taking place on a smartphone, this is a challenge and opportunity for all retailers. When it comes to fashion, the internet hasn't just changed the way shoppers are buying, but also the way they go about product discovery. Where once the shopping journey would have started with magazines, print media has been largely replaced by blogs and videos showcasing the latest fashion trends. But bricks and clicks are no longer in competition and are seen symbiotically by the modern shopper. Here again, digital channels like YouTube and Instagram are a growing influence as shoppers often do their research online, most likely on mobile, before hitting the store to buy it, a phenomenon known as "webrooming". At the same time, that ever-present shopping device, the smartphone, continues to make it easier and easier for shoppers to convert physical window shopping into online purchasing at the touch of a screen, or "showrooming". Apparel marketers are winning by using omnichannel shopper data to develop holistic profiles of their best customers and presenting them with merchandise to surprise, delight, and ultimately wear.
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That underscores even more how important it is for Walmart to continue expanding into new areas. In fashion specifically both have been making several acquisitions and launching labels to expand their customer bases. Walmart’s Bonobos deal follows and complements several other acquisitions that the retail giant has made in the area of online fashion. They include Modcloth in March 2017, outdoor retailer Moosejaw for $51 million in February 2017, Hayneedle in March 2016, and Zappos-style shoe retailer ShoeBuy for $70 million from IAC. Many of these have been fuelled by its acquisition of Jet.com, which it purchased in 2016 for $3 billion . Rumors had been circulating of the deal between Bonobos and Walmart for a while, and as predicted, this in part is a way to bring Andy Dunn, who had founded and was leading Bonobos, into a wider leadership role at Walmart. He will be “taking on a bigger and new role for us at eCommerce,” a Walmart spokesperson said, “overseeing our digital vertical brands. “We now have a strong brand and offering for Women in ModCloth and a strong brand and offering for Men in Bonobos. Andy will oversee both and has the chance to really play offense in this space.” He will be reporting to Marc Lore, president and CEO of Walmart U.S. eCommerce (who joined with the Jet.com acquisition). “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.
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