EconomyVN - Walmart spent $3 billion to buy Jet.com - a name known in the US market over the past year - whether it is dear for Walmart?
According to Business Insider, business circles were not surprised with the movements of Walmart. Right from the beginning of the year, they showed a strong transition plan. The closing of about 270 worldwide stores is "painful" decision, but is not impossible to do. They no longer want to bear the name of the largest retailers in the world, in the era of digital technology.
Forbes site also provides illustrative diagrams explaining why Walmart buys Jet.com. In Amazon's total revenue, they have nearly 93% of revenue from online sales. Meanwhile, Walmart always remains at 3%. Unless escaping the retailer shadow, Walmart also takes more costs for premises, labor, and transportation of goods.
While online shopping needs of customer grow, but its online volume is too small: 10 million items compared to 200 million items of Amazon. Jet.com will reduce the "thirst" of Walmart with another 12 million items. For this, the company has spent a lot of money and effort but still limping.
CNNMoney page citing from Walmart sources said the company intends to remain Jet brand because it was so familiar to young customers. Walmart will use only the Jet technology platform to digitize its inventory gradually and thereby reduce warehousing costs. This page also provides alerts with the title: Amazon beware!