Menswear retailer Bonobos has gone from an e-Commerce-only brand to a company planning to open as many as 100 stores by 2020, and such brick-and-mortar expansion may have just gotten a little easier. The retailer reportedly is in talks to raise as much as $100 million in capital funding, according to Reuters.
With the funding, Bonobos reportedly would be valued at nearly $500 million. Bonobos has not commented on the matter, and the potential investing party is unknown. Citigroup is working with Bonobos in raising the funds, according to the report.
As shoppers continue to gravitate toward experiences within brick-and-mortar stores, Bonobos has managed to achieve success even though consumers still must purchase its products online. The company rakes in $150 million in annual sales at a profit, according to those close to the company.
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Bonobos presently has 28 “guideshops” throughout the U.S. These locations have no inventory, and instead serve as experiential showrooms that allow customers to try on clothes before having them shipped to their home. It is unclear whether the retailer’s brick-and-mortar expansion plans include full-fledged stores or more of these guideshops, but the simplicity of the present store strategy has enabled the retailer to focus on its brand and product above all else.
The move to brick-and-mortar also reflects the larger trend within retail, one that even e-Commerce giant Amazon hasn’t been able to resist. While pureplay retailers gained a prominent role within the industry in the 2000s for pricing and convenience, physical visibility remains an all-too-critical factor in attracting eyeballs — and hopefully new customer segments — to a brand offering.
The company’s consistent growth has provided confidence to investors in the past; Bonobos has raised approximately $127 million to date, with backers that include Nordstrom and investment firms Accel Partners and Lightspeed Venture Partners.
