Looking to jumpstart its online business, Walmart said to be in talks to acquire Jet.com
The Wall Street Journal (paywalled link) is reporting today that Arkansas retailer Walmart is in talks to buy the online retailer Jet.com. Walmart has been looking for a way to jumpstart its online sales, and an acquisition of an already established online brand could do the trick.
Walmart in May reported better than expected sales – the one percent gain in sales was actually better than what analysts forecast.
“We’re going after a different type of customer with a different need,” Jet CEO Marc Lore said this spring. “We are about saving people money and empowering them to shop in a smarter way. And our technology is built to help consumers and retailers pull costs out of the overall ecosystem. So it is a more efficient way to buy product.”
Jet differs from Amazon in that it uses dynamic pricing, where the customer gets a discount for buying multiple items, and for single item viewing, where the customer is not presented with different versions of the same searched for item.
The company Walmart is looking at is well funded, but still very small compared to the more dominate Amazon. Still, that smallness may be what is needed for a takeover. If Jet.com were more established the price tag for it could be out of reach. Speculation is that Walmart would be willing to pay $3 billion.