Walmart’s 2016 purchase of Jet.com laid the groundwork for its current e-commerce and advertising surge. The deal brought in Marc Lore, whose strategy, coupled with the Flipkart acquisition, helped push Walmart’s online sales past $150 billion and turn retail media into a major profit engine.
Key Takeaways
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Jet.com’s leader was the asset: The real asset was Marc Lore, who used his inside knowledge of Amazon to rapidly expand Walmart’s online assortment and growth.
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Flipkart supercharged global e-commerce: Walmart’s $16 billion Flipkart stake now underpins strong international e-commerce growth, contributing to seven straight quarters of 20%-plus online revenue gains.
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Advertising and membership reshape profits: Walmart’s ad business has grown to $6.4 billion, helping advertising and membership to generate about a third of quarterly operating profit.
