It’s no secret Walmart is envious of Amazon’s e-commerce empire, and, in an attempt to gain some traction, the company announced Monday morning that it will acquire Jet.com for $3 billion in cash and $300 million in stock. Jet.com is an online retailer that offers an Amazon-like presence of goods ranging from furniture to household items and electronics.
Walmart CEO Doug McMillon said that it hopes the acquisition will help Walmart drop prices and grow its online presence quicker. “Our customers will win,” MCMillon said, seeming to poke at Amazon. ” It’s another jolt of entrepreneurial spirit being injected into Walmart.” Walmart said Jet.com has more than 2,400 retailer and brand partners and currently adds more than 400,000 new shoppers each month. It processes 25,000 orders a month, too, almost certainly a fraction of what Amazon currently fulfills.
Walmart will let Jet.com operate under its own brand, with Walmart.com “focusing on delivering the company’s, Everyday Low Price strategy.” It would make sense to create some form of one-stop portal for shopping, which is part of the appeal of Amazon’s offering, so perhaps that will come down the line. Walmart hopes to complete the deal “in the near future” after it receives a nod of approval from the government.