Wal-Mart to buy Jet.com in bid to strengthen e-commerce offering

  • 08/08/2016 02:07 PM
  • Source: Reuters
  • by: Nandita Bose and Sruthi Ramakrishnan
Wal-Mart to buy Jet.com in bid to strengthen e-commerce offering
by is licensed under
Wal-Mart's online business has struggled, posting its slowest growth in a year in the latest quarter, and the Jet deal reflected management's eagerness to prioritize online growth.

Wal-Mart, the world's largest retailer, said it would pay around $3 billion in cash for Jet, part of which would be paid over time. They will also pay an additional $300 million in shares over time.

The purchase comes after Wal-Mart said in June it sold a majority stake in Chinese e-commerce firm Yihaodian to JD.com Inc, which is China's second-largest e-commerce company. 

Wal-Mart's sales in the online unit were $13.7 billion in 2015, according to research firm Internet Retailer.

"We're looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that's what our customers want," Wal-Mart Chief Executive Officer Doug McMillon said in a statement.

Jet.com was launched by Marc Lore in July last year. Its initial strategy was to offer large discounts and the lowest prices on items based on a pricing formula that took into account factors such as the number of items customers added to their shopping cart for an annual $50 fee.

But three months after launch, Jet changed strategy and eliminated its subscription model.

While Wal-Mart and Jet will maintain distinct brands, they will leverage technology from both companies to develop new offerings, Wal-Mart said.

For the complete story please visit Reuters

ABOUT
Dynamic Wealth Research was founded on the principle the world is changing at an ever-increasing pace.  The greatest profit opportunities an investor will ever find are from massive, sweeping changes. Dynamic Wealth Research analyzes and closely follows these changes, keeps its readers on the leading edge of them, and shows you how to be best positioned these anxious, interesting, and ultimately profitable times.
Article Photo Credit: by is licensed under
Thumbnail Photo Credit: by is licensed under
DYNAMIC WEALTH RESEARCH

Analysis and insights into the newest trends and industries shaping the world and your wealth.

The world is more dynamic than at any time in History.
New Markets are opening up. Technology is accelerating. It’s changing everything.

And creating fortunes in the process.

Dynamic Wealth Research exposes the biggest and most profitable changes for our readers.
SHARE DYNAMIC WEALTH RESEARCH
© 2016 - 2024 DYNAMIC WEALTH RESEARCH, Privacy Policy, Disclaimer