High-end department store chain Nordstrom has been one of the most aggressive brands in developing online platforms, according to The Bulletin. It acquired flash-sale site HauteLook last February for $180 million in stock and was primary investor of the site’s subscription-based spin off, Sole Society. Now, Nordstrom has paid $16.4 million to team up with web-based men’s clothing retailer Bonobos.
Bonobos was established five years ago as a web-exclusive menswear brand. The start-up is trading its online marketing strategies with the 111-year-old Nordstrom for space in 100 of its brick-and-mortar locations. Founder and CEO Andy Dunn said the company would have been happy to stay online-only, but he realized it was missing a key market demographic after it experimented with a physical showroom, according to Forbes.
Young internet companies are facing stiff competition and realizing they need more room to grow, according to The New York Times. As part of Nordstrom, Bonobos will be able to meet the needs of men who must feel items and try them on before heading to the credit card terminal.
At the same time, established brick-and-mortar companies are looking to get into the online market where budget-conscious, tech-savvy customers are growing increasingly comfortable with online credit card payment processing, the source reports.Back To Blog