How Walmart’s E-Commerce Acquisition Spree Is Going

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, which Walmart bought in 2016

At $3.3 billion, Walmart’s purchase of 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.

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