Author: Carine Gate
The world’s largest retailer announced on Monday that it would buy Jet.com for $3b in cash. Additionally, Jet.com will receive $300 million worth of Walmart stock which will be paid in installments.
Walmart is the world’s biggest retailer, and Jet.com is a pretty small player. So why would Walmart want to buy Jet.com?
Well, there’s a lot of speculation about this, but no one knows for sure. Some say that Walmart is trying to compete with Amazon, and Jet.com is a way to penetrate the market. Others say that Walmart is just trying to get its hands on Jet.com’s technology, which could help them improve its website.
Whatever the reason, it’s clear that Walmart is doing something big, and it’s going to be interesting to see what happens next.
Jet.com has a lot of potential. It’s young, it’s growing, and it’s got a lot of room to be bigger. It’s also got a lot of room to learn. Walmart can help Jet.com grow faster and learn faster. Maybe that’s they acquired the fast-growing company.
Another reason jet.com is a good fit for Walmart is that they possess the same values.
An insider claimed that Walmart chose Jet because of its seasoned management staff in digital retail.
Walmart Is Hoping to Attract Younger & More Affluent Shoppers
Walmart is hoping that Jet.com will help the company attract younger, more affluent shoppers.
The retail giant paid $3 billion for the online retailer, a move that is seen as an attempt to compete with Amazon. Jet.com has been successful in attracting shoppers who are willing to pay more for items that are delivered quickly.
Walmart can use Jet.com to boost its ventures which has been successful in attracting millennials and affluent shoppers.
The Deal Is a Win for Both Companies
The whole thing makes a lot of sense for both companies, and it’s hard to see how anyone loses in this deal. Walmart gets a huge customer base and a ton of data that it can use to further refine its online offerings. Jet.com gets to keep doing what it’s doing, but with the backing of the world’s largest retailer.
For Walmart, the deal is a way to supercharge its online efforts. The company has been working hard to catch up with Amazon, but it’s been tough.
In the last year, the company has tried a lot of different things, including opening physical stores dedicated to online orders and partnering with Lyft to offer ride-hailing services to customers. But so far, nothing has moved the needle in a significant way.
The Deal is Expected to Close Later this year
According to Doug McMillon, Walmart is searching for ways to cut costs, extend its range and give the simplest and smoothest, shopping experience.
McMillon continued, “We think that buying Jet will hasten our progress on these commitments. Walmart.com will develop more quickly, the seamless shopping experience we’re targeting will materialize faster, and we’ll make it possible for the Jet brand to become even more prosperous in less time. Our clients will prosper. This is yet another burst of entrepreneurship that Walmart is receiving.”
It was further stated that Walmart is especially interested in Jet’s “smart cart” technology. The technology suggests ways for clients to save money, including upping their order sizes, purchasing things that ship from the same place, waiving returns, and choosing a low-fee payment option.
Clearly, Walmart sees Jet.com as a way to take on Amazon, and they’re willing to spend big to make it happen. Only time will tell if the acquisition pays off, but it’s a sign that the retail giant is serious about taking on its e-commerce rival.