Good overview on where Walmart stands today over at Digiday:
Walmart’s e-commerce sales have increased 63 percent in the first three months of this year, compared to 29 percent last quarter. (Walmart doesn’t disclose overall e-commerce sales in its quarterly report.)
Acquisition spending: $4 billion, including Jet.com, which Walmart bought in 2016
At $3.3 billion, Walmart’s purchase of Jet.com could be the most expensive e-commerce acquisition in history.
Bonobos et al are about expanding Walmart’s customer base:
Jim Cusson, president of retail branding agency Theory House, said that through those acquisitions, Walmart is buying a new consumer base — upper-middle-class people who normally wouldn’t shop at Walmart — and these new relationships would bring higher margins.
Just in case anyone needs another reminder that buying vertically integrated online retailers is not about multi-channel.
But it’s still too early to tell how successful Walmart can be with those acquisitions. After all, driving the lowest price is still a core value of Walmart, but that is not the foundation of the e-commerce brands Walmart has purchased. And company culture could be a big challenge.
Company culture and brand are far bigger obstacles to Walmart’s future than most anticipate.