Walmart gets set to leverage Jet.com acquisition

Date : 20 September 2016

Walmart has completed the acquisition of Jet.com, in a deal initially announced in August, and is setting about to leverage its assets and capabilities.

Provides Walmart with access to new shopper groups

Acquiring Jet.com provides Walmart with the ability to reach new customer groups and to serve them in new ways. While Jet.com has been popular with urban millennials, through its focus on delivering premium brands and experiences, Walmart.com has focused on winning value-conscious shoppers through its EDLP positioning. By combining the two organisations, they will be able to leverage each other’s customer bases and assets.

Ability to leverage proprietary technology to lower prices

This includes Jet.com’s proprietary technology and dynamic pricing model which will help Walmart’s shoppers to make choices that lower their prices as they shop. This includes building smarter baskets, opting out of free returns and using debit cards. This is expected to be implemented on Walmart.com in the near future. Walmart.com and Jet.com will continue to operate as separate brands.

Supports ongoing growth of Walmart’s ecommerce business

The deal also accelerates Walmart’s ecommerce business in the US. Over the last six months it has expanded its product offer from 7m items to more than 15m, by growing its marketplace, and is now the second largest online retailer by traffic in the US. This growth has been underpinned by a new, dedicated fulfilment network, while over the last 12 months, the retailer has also built one of the largest grocery ecommerce businesses in the country.

Secures Marc Lore to lead its ecommerce operations in the US

With the closing of the deal, Marc Lore, founder and CEO of Jet.com, joins Walmart’s leadership team, serving as executive vice president at Walmart and president and CEO of Walmart Ecommerce in the US. He will lead both Walmart.com and Jet.com, reporting to Walmart’s President and CEO, Doug McMillon, with an initial five-year contract in place.




Stewart Samuel, Program Director, IGD Canada
Based in Canada, Stewart heads up all of IGD's research and coverage on Walmart globally. He is also responsible for shaping IGD's research program across North America. Contact Stewart at [email protected] for further insight on the region.
@Stewart_IGD

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