{"id":3346,"date":"2017-09-11T08:00:08","date_gmt":"2017-09-11T15:00:08","guid":{"rendered":"https:\/\/www.numinix.com\/blog\/?p=3346"},"modified":"2017-08-27T13:54:26","modified_gmt":"2017-08-27T20:54:26","slug":"why-is-walmart-acquiring-e-commerce-businesses","status":"publish","type":"post","link":"https:\/\/www.numinix.com\/blog\/why-is-walmart-acquiring-e-commerce-businesses\/","title":{"rendered":"Why Is Walmart Acquiring E-Commerce Businesses?"},"content":{"rendered":"

\"Why<\/a><\/p>\n

Starting with the $3.3 billion acquisition of Jet.com, a direct competitor to Amazon.com, brick-and-mortar giant Walmart has been buying up <\/span>e-commerce<\/span><\/a> businesses at a record pace. Among its recent acquisitions are companies such as ModCloth and Bonobos, two trendy e-commerce start-ups whose offerings would look shockingly incongruous among the rows of cheap, mass-produced items that Walmart is associated with. What explains this unprecedented shopping spree and sudden departure from its mass-market offerings?<\/span><\/p>\n

If the word Amazon came to your mind, you would be right. As e-commerce is increasing in popularity for its convenience and accessibility, Amazon is fast becoming a threat to the profitability of brick-and-mortar stores as customers prefer to shop at the click of a button rather than to visit a physical store. Walmart is responding by beefing up its online portfolio to compete with the e-commerce juggernaut in the digital marketplace, and its strategy is already showing results; in the first fiscal quarter of 2017, Walmart’s U.S. online sales rose a staggering 63%.<\/span><\/p>\n

Instead of acquiring businesses that cater to the price-conscious American middle-class, with these recent acquisitions, the retail behemoth is aiming to attract a new consumer base, Millennials and upper middle-class shoppers who wouldn’t normally shop at Walmart and who aren’t as price sensitive as their current customers. Although news of the acquisitions caused confusion and upset among the start-ups\u2019 loyal clientele initially, it is too early to determine whether the world’s most affordable retailer will be able to win them over. \u00a0<\/span><\/p>\n

In addition, Walmart is benefiting from the e-commerce knowledge, talent, and start-up culture that these companies possess. These intangibles will be vital in enabling the retailer to successfully compete against e-commerce giant Amazon in the fierce digital landscape. Walmart’s success will rest on its ability to maintain the corporate culture of these start-ups while integrating them as a part of the larger group, which is no easy task!<\/span><\/p>\n

Do you think that Walmart will be successful in winning over these trendy start-ups’ clients? Tell us what you think by commenting below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Starting with the $3.3 billion acquisition of Jet.com, a direct competitor to Amazon.com, brick-and-mortar giant Walmart has been buying up e-commerce businesses at a record pace. Among its recent acquisitions are companies such as ModCloth and Bonobos, two trendy e-commerce start-ups whose offerings would look shockingly incongruous among the rows of cheap, mass-produced items that…<\/p>\n","protected":false},"author":267,"featured_media":3347,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[786,789,785,787,788],"class_list":["post-3346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing-strategies","tag-walmart-acquisitions","tag-walmart-bonobos","tag-walmart-e-commerce","tag-walmart-e-commerce-news","tag-walmart-modcloth"],"modified_by":"Smita Ramphul","jetpack_featured_media_url":"https:\/\/www.numinix.com\/wordpress\/wp-content\/uploads\/2017\/08\/September-11-Numinix-Blog-Image-Why-Is-Walmart-Acquiring-E-Commerce-Businesses-e1503867019528.jpg","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/posts\/3346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/users\/267"}],"replies":[{"embeddable":true,"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/comments?post=3346"}],"version-history":[{"count":0,"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/posts\/3346\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/media\/3347"}],"wp:attachment":[{"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/media?parent=3346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/categories?post=3346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.numinix.com\/blog\/wp-json\/wp\/v2\/tags?post=3346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}