Ensuring that it doesn’t get left behind in the competition for eCommerce dollars, Walmart acquired Jet.com, Inc. on August 8.
Paying $3 billion in cash, with $300 million of Walmart shares to be paid over time as part of the transaction, the company said the acquisition will help it “build on and complement the significant foundation already in place to serve customers across the Walmart app, site and stores and position the company for even faster e-commerce growth in the future by expanding customer reach and adding new capabilities.”
“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 Doug McMillon, CEO, Wal-Mart Stores, Inc. “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.”
Walmart is trying to catch up to Amazon’s huge lead in the eCommerce market. Amazon's North America sales topped $62 billion last year, as reported by Christina Chedder Berk and Krystina Gustafson of CNBC. But Wal-Mart is the second-largest online retailer with $13.6 billion in digital revenue.
Jet, which will maintain its brand, is among the fastest growing e-commerce companies in the U.S., explains Walmart in its statement announcing the acquisition.
“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,” the company says.