By Jamie Barrie W al-Mart Stores Inc. is going after a larger online market share challenging industry leader Amazon.com Inc using its recently acquired Jet. com business, more selection and lower prices. Marc Lore, CEOof Wal-Mart’s e-commerce operation, said Wal-Mart bought Jet in September for about $3.3 billion, turning to the startup to bolster an online operation that has lagged behind Amazon. “We’ve talked a lot about becoming a more customer- centric organization,” Lore said. “Our strategy is about offering more choice and competitive prices -- particularly on food and consumables -- and operating on the strength of the world’s most efficient e-commerce supply chain.” The company is looking to attract key customers whether they shop online or in stores. Wal-Mart is currently under increased pressure from Amazon as it tries to grow its grocery business to try and draw more online shoppers
to Amazon. Big-box retailers have traditionally used food to draw shoppers into stores, and convert them over to other goods with higher-profit margins. Amazon has many of its own plans and strategies to pick off more of Wal-Mart’s customers as the online giant targets food-stamp recipients under a pilot program to begin this summer. Wal-Mart is said to be responding to this Amazon threat with its Jet.com Fresh service, offering delivery of fresh food without a membership fee. Wal-Mart is looking to match Amazon’s reputation for being customer-focused. In a recent memo, Lore said, “We’re on a mission to reshape e-commerce and create a best-in-class shopping experience that empowers customers to save money in completely new ways,” when speaking of Wal-Mart’s plans for the future of their online business.
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SPOTLIGHT ON BUSINESS MAGAZINE • FEBRUARY 2017
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