Walmart eyes bid for Jet.com as it accelerates online ambitions

The world’s biggest retailer is considering a bid for the business, which could be valued at as much as $3bn (£2.25bn), according to reports emanating from the US.

It comes after Walmart boss Doug McMillon told shareholders at the company’s AGM in June – which was attended by Retail Week – that the retailer would become more aggressive in the drive to expand its online and digital offer.

Earlier this year, Walmart sold Chinese online marketplace Yihaodian to JD.com, in which it acquired a 5% stake.

The retailer, which owns Asda, also completed the rollout of Walmart Pay earlier this summer, offering customers a smartphone payment alternative to Apple Pay across its US store estate.

Walmart is also making strides to increase the number of products it sells through its own website and is bidding to take on Amazon Prime after launching the ShippingPass subscription service, which costs $49 (£36.73) a year for unlimited two-day deliveries.

Jet, which pledges to offer lower prices to shoppers than any of its competitors by bundling items together, is still largely unproven having only been founded by Marc Lore in July last year.

But more than 4 million consumers are already using the platform and its rapid top-line growth – which hit $1bn (£760,000) in sales in less than a year – could help Walmart accelerate its online ambitions.

The retailer’s ecommerce performance has stalled recently compared with previous years, but accounts for about 3% of its overall revenues.

In its last financial update, Walmart said digital revenues rose 7%, compared with 17% the previous year.

In comparison, Amazon’s first quarter sales jumped 32%.