With the closing of the deal, which was announced in early August, Jet.com founder and chief executive officer Marc Lore becomes executive vice president at Walmart and president and CEO of Walmart e-commerce in the United States.
Lore will lead Walmart.com and Jet.com, reporting to McMillon. Plans call for Walmart.com and Jet.com to operate as separate brands and to leverage technology and talent across both entities.
“We’ve grown Walmart.com to the second-largest online retailer by traffic in the U.S., and in just the past six months we’ve expanded from 7 million items to more than 15 million on the site,” McMillon wrote in a blog post. “We’re adding about a million more each month. We’ve built an impressive fulfillment network that uses mega-sized fulfillment centers and our stores to get orders to customers faster. Within a year, we’ve created one of the largest online grocery businesses in the country.”
Walmart completed the transaction after the expiration of the waiting period under federal regulations. Under the agreement, Walmart is paying Jet.com about $3 billion in cash, part of which will be paid over time, and $300 million in Walmart shares, paid over time.
Along with top-notch technology, Jet.com has a expanding customer base of urban and Millennial customers, with more than 400,000 new shoppers added monthly and an average of 25,000 daily processed orders, McMillon wrote, calling Walmart’s and Jet.com’s customer bases complementary. He added that the deal will bring new talent to Walmart via Lore’s team.
“I can’t wait to jump in and get started,” Lore stated. “I’ll be spending a lot of time with the team in the coming weeks and months focused on scaling Walmart.com and Jet.com, building on our solid foundations. Together, we will be stronger and move even faster to reimagine the future of shopping.”