If Amazon keeps growing at the same rate as the company does right now then the online giant from Seattle will have caught up with Walmart by 2025, at the latest. How much last year’s net sales decline has frightened Walmart has been become quite visible over the last months.
At the company’s capital market day last week, Walmart presented an update to its strategy – and also talked about the recent online acquisitions and investments with Jet.com and JD in China. Walmart has recently doubled its stake in JD to 10.8% (and previously sold its Chinese online grocery store Yihaodian for a 5% stake):
As the new e-commerce company in town, Walmart management presented this time without ties. Not anymore with Walmart was Neil Ashe, who used to be president and CEO of global e-commerce and technology at Walmart (his page is still up here). Ashe presented last year and just had gotten technology added to his responsibilities this January.
Ashe got replaced by Jet.com founder Marc Lore. Lore weren’t allowed to present alone just yet and got accompanied by Walmart CEO Doug McMillon:
Walmart’s CFO broke down where Walmarts future investments are going to happen. Growth by simply opening more brick-and-mortar stores is a thing of the past for Walmart:
In e-commerce, Walmart is going to concentrate on the marketplace business and shopping cart optimization à la Jet.com:
Walmart CEO Doug McMillon emphasized at the event once more that Marc Lore is under his personal protection and that Lore’s task is to build out the e-commerce business independently from Walmart’s existing structures and processes.
We will see wether this will succeed.
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