Matt Linder writes about Wal-Mart’s acquisition of Jet.com, which is an online marketplace. Many economic experts are wondering how the marriage between these two companies will work. Some speculate that Wal-Mart plans to take Jet.com’s smart cart pricing model and adapt it to their online marketplace. Already ranked at number 4 as an internet retailer, this acquisition may help them climb the ranks.
- With retail locations near the vast majority of the U.S. population, Wal-Mart could offer shoppers a lower price on online orders picked up in store to drive incremental revenue.
- The ink is barely dry on Wal-Mart Stores Inc.’s $3.3 billion acquisition of online marketplace Jet.com, with the acquisition becoming official on Sept. 19, and many in the industry are wondering how exactly this marriage is going to work.
- One of the biggest questions analysts and others in the industry have is whether Wal-Mart, No. 4 in the Internet Retailer 2016 Top 500 Guide, is going to eventually incorporate Jet.com’s smart cart pricing model in with its overall offerings.
“One advantage that Wal-Mart has over Amazon is its extensive store network. Wal-Mart has 11,539 retail locations around the world, including 4,629 Wal-Mart stores in the U.S. and 654 Sam’s Club locations. Forbes reported three years ago that nearly 90% of the population in the U.S. lives within a 15-minute drive of a Wal-Mart store.”