In the world of retail where competition is steep, companies are preparing themselves for a better future! In a recent development, Walmart Stores Inc. has decided to buy Jet.com – which is amongst the fastest growing and most innovative e-commerce companies in the US market – for a handsome amount of US $ 3 billion (additional US $ 300 million of Walmart shares will be paid over time as part of the transaction), to compete with the e-commerce retail giant Amazon in a bigger way.
It may be mentioned here that the online business of Walmart remained sluggish over the past year. Therefore, the Jet deal happens to be management’s effort to boost and line-up online growth. “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. We believe the acquisition of Jet accelerates our progress across these priorities. Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time. Our customers will win. It’s another jolt of entrepreneurial spirit being injected into Walmart,” said Doug McMillon, President and CEO of Walmart Stores Inc.
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Both Jet and Walmart will uphold their distinct brands… While Walmart will emphasise on delivering the company’s Everyday Low Price Strategy, Jet will go on to provide a unique customer experience with curated collections.
