Walmart To Lose $1 Billion In E Commerce Operation | WHAT REALLY HAPPENED

Walmart To Lose $1 Billion In E Commerce Operation

Walmart (NYSE: WMT) has been pouring billions into its domestic e-commerce operations for the past three years, since acquiring Jet.com and installing Marc Lore as the head of U.S. e-commerce. It’s bought several digitally native brands, including Bonobos and Modcloth, and it’s successfully attracted new brands to Walmart.com and created its own brands in-house.

But its online grocery business, a business in place before the Jet.com acquisition, has been the star of the show the last few years. Online grocery helped propel Walmart’s U.S. e-commerce business to 40% revenue growth last year, and a similar level of growth will help Walmart reach between $21 billion and $22 billion in online sales this year.

While grocery is a standout winner, Walmart’s efforts to capture share of more traditional online purchases have come at a huge cost. The company is set to lose more than $1 billion this year from its U.S. e-commerce operations, according to a report from Recode.

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