Tuesday 9 August 2016

Walmart Jetting to No.2 Online?

                                                                                                                                            pic Jet.com
Walmart's purchase of Jet.com may impose too big a payload on a 1-year start-up.

At Check-in:
  • Walmart are paying $3.3bn for an online fellow-passenger that has generated sales of $1bn in its first year, but no profits, to complement their current $13.6bn digital revenue
  • They gain access to a young team of digital talent that has thrived in a small company environment, now transferring to the world's biggest retailer
  • They are hoping to access the cheapest way to ship online
  • Walmart can offer Jet.com access to their global sourcing and buying power...and cash
At Check-out:
  • Walmart's bricks & mortar estate, too big and slowing...
  • Jet.com sells in bulk to a young audience - ability to pay?
  • Transactional bulk-buying in an era that is increasingly about smaller, faster, closer, more convenient, cheaper shopping? Contrast this with Dollar Shave Club, who have found a way of shipping monthly at $1/basket, on a subscription model...
However, being Walmart, although No.2, they will try harder...

But are No.1 Amazon flying so high, No.2 becomes irrelevant?

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