Wal-Mart Stores Inc said on Friday it would buy online men`s fashion retailer Bonobos Inc for $310 million, in its fourth e-commerce deal in under a year, as it seeks to bridge the gap with e-commerce leader Amazon.com Inc.
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 in a $13.7 billion deal.
A slew of other retailers` shares also fell on the news, including shares of Kroger Co, Target Corp and Europe`s Tesco Plc and Carrefour.
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.
