Wal*Mart’s $3 billion mistake

burning-wasting-moneyThere was a time when Wal*Mart was the king of all retailers and made manufacturers reps run for cover.  It seems that Wal*Mart’s best days may be behind it.  Paying $3 billion for Jet.com is a huge blunder that’s going to come back and bite them in the ass.

Jet.com is not profitable yet and although their sales are increasing, they pale in comparison to Amazon.com.  For some reason Wal*Mart felt the need to buy Jet.com, more for its technology, than for its business.  Wal*Mart could have easily invested in people to build a better eCommerce site, but I guess good help is hard to find in Bentonville, Arkansas.

walmart-logo

The other issue that nobody seems to be talking about is the “anti-Wal*Mart” customer(s).  How many Jet.com customers going to leave the site when they learn it is owned and operated by Wal*Mart?  My guess is a lot.

This is what happens when retailers run out of ideas and innovation.  Macy’s is learning that the hard way announcing that they are closing 100 stores because consumers don’t have a reason to shop there.

What can retailers do?

1ne: Continuous measuring their eCommerce experience and upgrading where necessary.

2wo: Pay retail salespeople a good salary and invest in them with sales and product training.

3hree: Learn to embrace competition online to partner together.

4our: Understand that consumers have the power, not you.

About richmeyer

Rich is a passionate marketer who is able to quickly understand what turns a prospect into a customer. He challenges the status quo and always asks "what can we do better"? He knows how to take analytics and turn them into opportunities and he is a great communicator.

View all posts by richmeyer →

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.