BUSINESS - Walmart Confirms US$3.3B Jet.com Acquisition

A Walmart news release several hours ago confirmed it has accepted terms to acquire Jet.com for US$3.3 billion dollars.

In the largest e-commerce deal yet, Wal-mart Inc. will pay US$3 billion in cash and provide US$300 million in Walmart shares. According to independent reports, Jet’s 45-year-old founder, Marc Lore, will take on the senior leadership position in e-commerce for Walmart. WalMart’s top online executive, Neil Ashe, who joined the company as head of e-commerce in 2012 is expected to depart. 

“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, president and 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. Our customers will win. It’s another jolt of entrepreneurial spirit being injected into Walmart.”

According to the joint news release, Walmart and Jet will maintain distinct brands, with Walmart.com focusing on delivering the company’s Everyday Low Price strategy, while Jet will continue to provide a unique and differentiated customer experience with a curated assortment of products and services. Walmart and Jet will leverage innovative technology solutions from both companies to develop new offerings to help customers save time and money.

“We started Jet with the vision of creating a new shopping experience,” said CEO and co-founder Marc Lore. “Today, I couldn’t be more excited that we will be joining with Walmart to help fuel the realization of that vision. The combination of Walmart’s retail expertise, purchasing scale, sourcing capabilities, distribution footprint, and digital assets – together with the team, technology and business we have built here at Jet – will allow us to deliver more value to customers.”

InfoStream provided information of the pending Walmart Jet deal in an earlier article entitled 'Why would Walmart buy Jet.com'. The directors of both companies have approved the deal which is expected to receive regulatory approval and complete before the end of the year.

About Walmart:

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, nearly 260 million customers and members visit our 11,527 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482 billion, Walmart employs more than 2.3 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.

RETAIL - Walmart Closes 269 Stores Globally, Sharpens Retail Focus

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Today is the last day of public access for 269 Walmart stores.

Walmart announced earlier this month that it is sharpening retail focus and will close several hundred stores. The closing are expected to affect approximately 16,000 associates. About 10,000 associates are in the U.S. where 95 percent of the closed stores in the U.S. are within 10 miles of another Walmart. The hope is that these associates will be placed in nearby locations. Where that isn’t possible, the company will provide 60 days of pay and resume and interview skills training in keeping with the Walmart objective to help all associates find their next job opportunity.

Today’s action follows a thorough review of Walmart’s nearly 11,600 worldwide stores that took into account a number of factors, including financial performance as well as strategic alignment with long-term plans. In total, the impacted stores represent less than 1 percent of both global square footage and revenue.

“Actively managing our portfolio of assets is essential to maintaining a healthy business,” said Doug McMillon, president and CEO, Wal-Mart Stores, Inc. “Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It’s important to remember that we’ll open more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it.”

Walmart will close 154 locations in the U.S., including the company’s 102 smallest format stores, Walmart Express, which had been in pilot since 2011. Walmart instead will focus on strengthening Supercenters, optimizing Neighborhood Markets, growing the e-commerce business and expanding Pickup services for customers. Also covered in the closures are 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam’s Clubs.

Read the Release