Walmart Will Buy Jet For $3.3 Billion

Andrew Cummings
August 14, 2016

Wal-Mart said Monday it had agreed to acquire startup Jet.com for $3.3 billion, making a major pivot in an e-commerce strategy that has so far failed to excite customers and left it well behind online shopping leader Amazon.

The deal has been approved by the Boards of Directors for both companies but is still subject to regulatory approval. Our customers will win.

Walmart President and Chief Executive Doug McMillon called the acquisition "another jolt of entrepreneurial spirit being injected into Wal-Mart".

Wal-Mart and Jet will maintain distinct brands, with Wal-Mart focusing on goods at low prices "every day" and Jet still providing a more "curated" assortment of products, the companies said.


"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 noted in its statement.

Jet.com launched in July 2015 and worked to differentiate itself through bulk buying.

Jet.com was launched by Marc Lore in July previous year. Customers are encouraged to add various tagged items to their shopping carts, which can be shipped more cheaply in the same box from a nearby vendor.

Wal-Mart's online business posted its slowest growth in a year in the latest quarter.


Jet says it has "set out to make shopping more transparent, more efficient, and at the same time, a little more fun", according to its website.

Walmart's purchase of its former competitor will be the most expensive purchase of an e-commerce site in US history.

The deal will go a long way to helping Walmart expand its e-commerce growth and customer reach, and also give it more firing power as it competes with Amazon.

Walmart is the nation's largest retailer, but increasingly that title has appeared threatened by Amazon.com, which has made huge inroads in the last five years.


Jet and Walmart will remain separate brands and work together to establish technology solutions that will help consumers save money in today's e-commerce sector.

Other reports by iNewsToday

FOLLOW OUR NEWSPAPER