On Monday Wal-Mart announced its deal to buy fast-growing Jet.com for $3 billion in cash plus $300 million in stock. The numbers of the buying price shows how heavily Wal-Mart is willing to invest as it tries to boost online sales.
As per the agreement, Jet.com co-founder and CEO Marc Lore will operate as executive vice president at Wal-Mart and president and CEO of Wal-Mart’s e-commerce business in the U.S.
Jet’s pricing technology determines which sellers are the most efficient in value and shipping and adjusts prices based on what items are in the checkout cart as well as proximity from the shoppers’ home. Shoppers are encouraged to add more to build a more efficient cart and buy items labeled “smart cart” for more savings.
Analysts say that the deal still won’t enable Wal-Mart to catch up to online leader Amazon.com in sales. For Jet.com, which had been pouring money into splashy TV ads and other marketing, being owned by Wal-Mart should accelerate its path to profitability.