Walmart has completed its acquisition of Jet.com as it looks to accelerate online growth and deliver a seamless shopping experience for customers.
The company acquired Jet.com for approximately $3 billion in cash, and $300 million in stock with part of the compensation to be paid over time. Walmart.com and Jet.com will operate as separate brands, the company noted, while leveraging technology and talent across both entities.
“We’re thrilled to welcome the Jet.com team to the Walmart family and excited to expand the ways we serve our current customers and reach new customers online,” said Doug McMillon, Wal-Mart Stores CEO. “Jet brings a unique approach and technology that puts customers in control of their experience, helping them find additional ways to save.”
Marc Lore, founder and CEO of Jet.com, now joins Walmart’s leadership team, serving as evp/Walmart and president and CEO of Walmart e-commerce in the U.S. He will lead both Walmart.com and Jet.com, reporting to McMillon.
In terms of synergies, Walmart maintained that both companies, “obsess about saving customers time and money,” and, together, can become better at doing both in a dual effort to provide seamless shopping from app to site to store.
McMillon detailed Walmart’s position on the Jet.com purchase by adding that Jet.com provides more ways for Walmart to serve existing and reach new customers online, by providing shoppers with choices that lower their prices as they shop such as building smarter baskets. The deal also builds on Walmart’s e-commerce foundations and can accelerate growth, leveraging its fulfillment network that uses mega-sized distribution centers and stores to get orders to customers.
He also noted that Walmart.com and Jet.com customer bases are complementary with Jet popular among urban Millennials given its focus on delivering premium brands and experiences and Walmart engaging value-conscious shoppers with everyday low prices, broad assortments and convenient stores.
In addition, Walmart and Jet can win the future of retail together by saving consumers both money and time by combining Walmart’s distribution expertise and Jet.com’s technology, shopping experience, customers and talent, noted McMillon.