When Walmart acquired Bonobos and Modcloth, confusion reigned over how these trendy, upscale brands meshed with America’s no-frills most affordable retailer.
Now, it’s increasingly clear that these investments were geared toward its Amazon competitor — Jet.
You’ll likely never see a Bonobos or Modcloth product in a Walmart store or on Walmart.com. Bonobos and Modcloth will, however soon be offered on Walmart-owned Jet, according to a conference call with journalists to discuss second quarter earnings.
“The Jet customer demographic — millennial, urban, higher income — aligns well with the demographics of ModCloth and Bonobos,” Walmart spokesperson Randy Hargrove told Business Insider.
This is a clear signal of how Walmart.com and Jet.com will diverge. While Walmart is a mass-market retailer that appeals to every demographic, Jet will be geared toward the urban millennial customer.
The difference in strategies is starkly illustrated by viewing the homepages for the two e-commerce websites.
Jet promotes millennials favourites like La Croix seltzer, fresh produce, and ethical cleaning products, while Walmart highlights Tiki Torches, Ziploc bags, and Tums.
Both Walmart’s ecommerce operation and Jet.com are headed by Jet’s former CEO, Marc Lore.
Walmart currently has no plans to sell Bonobos or Modcloth on Walmart.com, but that could change in the future.
For now, urban millennials can rest easy that they can still purchase their favourite brands without it arriving in a box emblazoned in Walmart blue — instead, it may be Jet purple.
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