Walmart purchase online store Jet.com for $3 billion, set to retain top spot
Walmart has officially purchased Jet.com – (an e-commerce start-up) for a whopping $3 billion. On Monday, the company formally made this acquisition announcement on its blog.
Basically, in a bid to regain its strong presence and retain its relevance as the giant online shopping destination as against the recent competition from its rival Amazon.
It's obvious Jet.com is radiating with achievement considering is just beginning its existence in the e-commerce industry approximately two years.
The deal has been labeled the largest US e-commerce acquisition in history, according to The Wall Street Journal.
However, Walmart strongly believes the acquisition will enhance its strategic goals, create diverse technological access with massive innovation in supply-chain. In addition, to 4 million shoppers using Jet.com with a projection of $1 billion in sales this year shows a bright future for Walmart.
“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, Wal-Mart Stores, Inc.
Meanwhile, the e-commerce market industry is still habitable for success, the challenges facing Walmart's e-commerce growth cannot be overlooked; it has been negative returns — largely declining over the years. A look at Amazon’s annual online sales revenue records boasts of $99 billion as against Walmart’s $14 billion yearly online sales revenue. The difference is quite clear!
It’s safe to affirm that this great decision in purchasing Jet.com will complement and resuscitate the mode of the supply chain in order to deliver exceptional quality value to its customers, thereby ensuring satisfaction of service rendered – which is the sole of any business.
Via: | Recode |
Source: | The Next Web |
Image: | Jet.com |
