BENTONVILLE, AR— Walmart has long been the dominant force in the world of brick-and-mortar retailing, but as consumer buying habits shifted to e-commerce in recent years, the discount chain soon realized its digital operations were lagging.
Through the acquisition of several online retailers, most notably Jet.com and Hayneedle.com, Walmart has sought to quickly overhaul its e-commerce operations in an attempt to close the competitive gap between it and rival Amazon.
Many are now watching the new initiatives that Walmart, the HOMEWORLD BUSINESS® Retailer of the Year for 2017, is implementing and what impact they will have on the many facets of the retailer’s business, be it e-commerce, distribution and store operations.
The most eye-catching of Walmart’s e-commerce acquisitions was the $3.3 billion buy of Jet.com, a deal that retail analysts said arose from the recognition by Walmart that adding new physical stores could no longer drive sales at an acceptable pace.
“The acquisition of Jet was much more about the culture,” said Neil Stern, a senior partner at McMillan Doolittle. “They brought leadership. They brought management. They brought algorithms and variable pricing concepts. Before the Jet acquisition, e-commerce growth was anemic. For Walmart, this was a seminal moment. Otherwise, it was going to be a giant but moribund.”
In this issue’s cover story, HomeWorld Business provides insight from Marc Lore, president and CEO of Walmart e-commerce U.S., on what steps the retailer is taking to boost its e-commerce operations. In addition, several leading retail analysts share their thoughts on what Walmart is doing today, and what will need to be done going forward.