Walmart CEO Doug McMillon Explains the Strategy Behind the Jet.com Acquisition

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Walmart CEO Doug McMillon Explains the Strategy Behind the Jet.com Acquisition

09/26/2016
To try to keep pace with online rival Amazon, Walmart announced its plans last month to acquire digital commerce startup Jet.com for around $3.3 billion. The deal became official last week and in celebration of the ink drying on the billion dollar transaction Walmart CEO and president Doug McMillon penned a blog on Walmart’s website outlining the benefits of the deal and why the Walmart leadership team decided to acquire the still unproven Jet.

The entire blog post can be read here. Below are five key reason’s Walmart acquired Jet in McMillon’s own words.

1) Jet.com brings more ways to serve our customers and reach new customers online. Jet.com created a unique, transparent way for customers to shop, helping them make choices that lower their prices as they shop — from building smarter baskets to opting out of free returns and using debit cards. This has helped Jet.com win fans among savvy shoppers and will help us put the power to save in more shoppers’ hands. Look for that on Walmart.com.
 
2) The deal will build on our e-commerce foundation and accelerate growth. We’ve grown Walmart.com to the second largest online retailer by traffic in the U.S. and in just the past six months we’ve expanded from 7 million items to more than 15 million on the site. We’re adding about a million more each month. We’ve built an impressive fulfillment network that uses mega-sized fulfillment centers and our stores to get orders to customers faster. Within a year, we’ve created one of the largest online grocery businesses in the country.
 
3) Jet.com’s and Walmart.com’s customer bases are complementary. Jet.com is a hit among urban millennials, and it will continue to focus on delivering premium brands and experiences. Walmart.com is winning value-conscious shoppers with everyday low prices by keeping costs low. And that’s enhanced by a wide assortment and convenient store pickup options. Together, both Jet.com and Walmart.com will be able to leverage each other’s assets to grow the ways we serve customers.
 
4) Jet.com boasts incredible talent. Marc **** is both a visionary e-commerce leader and a merchant. He brings with him a smart and talented team that, when combined with ours, will be the best in retail.
 
5) Together, Jet.com and Walmart can win the future of retail. We’re in the business of “saving people money so that they can live better.” But the value of our customers’ time cannot be overstated. To win the future of retail, we must save customers both money and time. By combining with Jet.com’s technology, shopping experience, customers and talent, we will do exactly that. We will exceed their expectations!”