Sir, Competition is fiercer than ever in the online retailing industry, as Walmart has acquired Amazon’s up-and-coming rival Jet.com for approximately £3.3bn.
Walmart’s online sales have long been lagging behind Amazon’s, but the innovation and expanding customer base that Jet.com will bring to the table could make this sizeable investment a real success.
Despite Amazon’s skills in analytics and the use of data, Jet.com has been expanding at an impressive pace as they have been undercutting Amazon’s prices on a large range of products.
The desire for success in e-commerce makes it likely that this kind of bold and strategic move, particularly by incumbents in the market, will become increasingly frequent as retailers realise what it will take to shake up this vast industry.
Julian Ward, partner, Hamlins
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