Walmart: 5 reasons why the Jet.com deal makes sense
BENTONVILLE, Ark. - Wal-Mart Stores on Monday announced completion of the company’s acquisition of Jet.com, following expiration of the waiting period under federal regulations. The news was initially shared on Instagram by Walmart president and CEO Doug McMillon.
“We’re thrilled to welcome the Jet.com team to the Walmart family and excited to expand the ways we serve our current customers and reach new customers online,” McMillon said. “Jet brings a unique approach and technology that puts customers in control of their experience, helping them find additional ways to save.”
McMillon provided five "big reasons" Walmart acquired Jet.com in a blog posted Wednesday.
1. The deal delivers savings
"Jet.com brings more ways to serve our customers and reach new customers online," McMillon wrote. "Jet.com created a unique, transparent way for customers to shop, helping them make choices that lower their prices as they shop — from building smarter baskets to opting out of free returns and using debit cards. This has helped Jet.com win fans among savvy shoppers and will help us put the power to save in more shoppers’ hands. Look for that on Walmart.com."
2. The deal accelerates growth
"The deal will build on our e-commerce foundation and accelerate growth," McMillon added. "We’ve grown Walmart.com to the second largest online retailer by traffic in the U.S. and in just the past six months we’ve expanded from 7 million items to more than 15 million on the site. We’re adding about a million more each month. We’ve built an impressive fulfillment network that uses mega-sized fulfillment centers and our stores to get orders to customers faster. Within a year, we’ve created one of the largest online grocery businesses in the country."
3. The deal enables a greater digital reach
"Jet.com’s and Walmart.com’s customer bases are complementary," McMillon said. "Jet.com is a hit among urban millennials, and it will continue to focus on delivering premium brands and experiences. Walmart.com is winning value-conscious shoppers with everyday low prices by keeping costs low. And that’s enhanced by a wide assortment and convenient store pickup options. Together, both Jet.com and Walmart.com will be able to leverage each other’s assets to grow the ways we serve customers."
4. The deal brings together the best in online retail talent
"Jet.com boasts incredible talent," McMillon wrote. "Marc is both a visionary e-commerce leader and a merchant. He brings with him a smart and talented team that, when combined with ours, will be the best in retail."\
5. Finally, the deal will deliver results
"Together, Jet.com and Walmart can win the future of retail. We’re in the business of 'saving people money so that they can live better,'" McMillon concluded. "But the value of our customers’ time cannot be overstated. To win the future of retail, we must save customers both money and time. By combining with Jet.com’s technology, shopping experience, customers and talent, we will do exactly that. We will exceed their expectations."
With the close of the deal, Marc Lore, founder and CEO of Jet.com, now joins Walmart’s leadership team, serving as EVP Walmart and president and CEO of Walmart eCommerce in the U.S. He will lead both Walmart.com and Jet.com, reporting to McMillon.
“I can’t wait to jump in and get started,” Lore said. “I’ll be spending a lot of time with the team in the coming weeks and months focused on scaling Walmart.com and Jet.com, building on our solid foundations. Together we will be stronger and move even faster to reimagine the future of shopping.”
As previously disclosed, Walmart acquired Jet.com for approximately $3 billion in cash, a portion of which will be paid over time, and $300 million of Walmart shares, all of which will be paid over time. The deal builds on Walmart’s strong e-commerce foundation and is intended to help accelerate growth and deliver a seamless shopping experience for customers. Walmart.com and Jet.com will operate as separate brands, while leveraging technology and talent across both entities.