walmart to buy us online retailer jetcom for 33bn
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

To Amazon and other competitors

Wal-Mart to buy US online retailer Jet.com for $3.3bn

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleWal-Mart to buy US online retailer Jet.com for $3.3bn

Wal-Mart Stores announced it will acquire e-commerce company Jet.com
New York - Arab Today

Wal-Mart Stores announced Monday that it will acquire e-commerce company Jet.com for $3.3 billion as it beefs up its online retail operations in response to Amazon and other competitors.

Wal-Mart is paying $3 billion in cash for the online retailer. Shareholders of Jet.com, which was launched in July 2015, will also receive $300 million in Wal-Mart shares over time, Wal-Mart said.

The move comes as Wal-Mart and other conventional retailers struggle to keep up with Amazon and a slew of smaller online businesses that have sprouted in recent years as consumers become more comfortable with shopping in cyberspace.

Conventional retailers have responded by shutting some stores and by meshing the two formats by, for example, having consumers order on line but pick up groceries at a store.

In recent months, Wal-Mart has announced ventures with ride-sharing companies Lyft and Uber to allow speedy delivery of goods to compete with Amazon's Prime service. It has also introduced Walmart Pay, a mobile application designed to compete with Apple Pay.

"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," said Wal-Mart chief executive Doug McMillon.

Credit Suisse said the Jet.com acquisition by Wal-Mart could spark acquisitions by other conventional retailers as specialty stores in everything from auto parts to home furnishings look for new ways to reach consumers.

The Jet.com deal "could open up the doors for other brick and mortar retailers to follow suit," Credit Suisse said.

"Wal-Mart's move is one that many retailers should be considering as they need the people, the technology and infrastructure to compete, but have shied away for fear of further margin erosion," it added.

- Targeting millennials -

Wal-Mart praised Jet.com's leaders, including chief executive Marc Lore, whose previous company owned the e-commerce site Diapers.com., which was sold to Amazon in 2010.

Jet.com has 3.6 million members and has been adding 400,000 new subscribers a month and averaging 25,000 daily processed orders. The company works with about 2,400 retailers and brands.

"The acquisition of Jet will infuse Walmart with fresh ideas and expertise, as well as an attractive brand with proven appeal, especially with Millennials, the first generation of true digital natives," Wal-Mart said.

The deal could also let Wal-Mart access a wealthier clientele. The average Wal-Mart customer has annual income of about $58,000, compared with $68,000 for Amazon, said market research firm Kantar.

Wal-Mart plans to keep Jet.com as a distinct brand.

Ramping up investment in e-commerce has been a drag on Wal-Mart earnings, along with added costs due to paying US workers more.

Wal-Mart said in October it would raise investment in e-commerce from $700 million in 2015 to $900 million in 2016 and a projected $1.1 billion in 2017.

Wal-Mart is still awaiting a fuller payback on the investment. In May, the company reported a seven percent rise in e-commerce sales in the first quarter, a rate of increase that McMillon said was too slow.

Wal-Mart reported $478.6 billion in sales last year, more than four times that of Amazon. However, Amazon's market capitalization of $361.6 billion is nearly 60 percent higher than Wal-Mart's.

Wal-Mart shares fell 0.6 percent to $73.34.

Source: AFP

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

walmart to buy us online retailer jetcom for 33bn walmart to buy us online retailer jetcom for 33bn

 



Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

GMT 09:40 2017 Sunday ,17 December

May wins Brexit boost, but bigger battles await

GMT 06:33 2017 Friday ,01 December

Venezuela blames oil woes on 'sabotage

GMT 10:53 2017 Wednesday ,27 September

Fadl Shaker change residency after threats

GMT 08:37 2018 Tuesday ,23 January

Europe brings on charm and blue skies

GMT 22:55 2017 Tuesday ,07 February

Egypt backs Trump’s media criticism

GMT 09:50 2016 Thursday ,27 October

Voices concern over AT&T-Time Warner

GMT 07:48 2018 Sunday ,07 January

Globes newcomer Timothee Chalamet shoots

GMT 15:35 2017 Friday ,06 October

SAMA governor: Real GDP growth of 1.7% during 2016

GMT 11:42 2017 Tuesday ,31 October

Greece finds stand-up comedy amid economic tragedy
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle