WAL-MART Acquired Jet.Com, An E-Commerce Company, To Buy Shoe Online Retailers.

According to the world clothing shoes and hats net, in January 5th,

Announced through the group last year's acquisition of the electricity supplier company

Buy

The online retailer traded at a price of $70 million, and the paction was completed in December 30, 2016.

After the completion of the paction, Shoe Buy is still operating independently, and chief executive officer Mike Sorabella and 200+ employees continue to work in Boston.

The suppliers of Shoe Buy can enter Jet.com according to their own wishes.

According to the Wal-Mart Stores Inc. WAL-MART announcement, Shoe Buy sells shoes, clothing and accessories with 800 brands and over 1 million SKU, covering men, women, children's wear, accessories and so on.

Founded in 1999, ShoeBuy is headquartered in Boston.

In early August of last year, Wal-Mart Stores Inc. WAL-MART paid $3 billion in cash plus $300 million in WalMart WAL-MART stock to buy Jet.com.

WalMart WAL-MART said that trading can build and complement the infrastructure of the group in the rapidly growing electricity supplier industry.

The paction has been approved by the board of directors of two companies and is expected to be delivered within the year.

According to the world clothing and shoe net, the above pactions reflect the dual predicaments of the two industries of physical retail and e-commerce.

WalMart WAL-MART faces fierce competition against Amazon.com Inc. (NASDAQ:AMZN) Amazon, which has been strong for a long time despite losses in the previous year, but after winning quarterly profits, Amazon.comInc. Amazon has become the last Wall Street company.

Although self built electricity providers, or even mobile payment procedures, WalMart WAL-MART had to face the reality of high investment and slow down in the electricity business.

As for Jet.com, although the growth of the electricity supplier industry is still higher than that of the traditional retail industry, many companies such as Gilt have chosen to sell themselves in the face of fierce competition and capital cold.

Before the acquisition of Jet.com, WalMart WAL-MART sold China's electric business Yihaodian No. 1 store to China's second largest e-commerce JD.com Inc. (NASDAQ:JD) Jingdong at the end of June 2016, in exchange for a stock of 5% of the latter and a series of cooperation clauses.

Only 1 years of online discount electricity supplier Jet.com has learned that GMV recorded 1 billion dollars in the past year, 12 million SKUs, adding 400 thousand users and 25 thousand orders a month.

Jet.com adopted a 50 yuan annual fee model at the beginning of its creation, but failed three months later, and abolished the profit model.

According to a series of algorithms, the "discount" mode of the electricity supplier improves the price of the same products, freight rates and the best purchase pattern of different locations for the users to achieve the lowest price effect.

Jet.com was founded by Marc Lore, Mike Hanrahan and Nate Faust, Marc Lore as chief executive officer.

Marc Lore once founded the Quidsi group, including Diapers.com, Soap.com and Wag.com, and sold it to Amazon.com Inc. Amazon at the price of US $545 million in 2010.

In an interview with the Wall Street journal, Marc Lore estimated that Jet.com could achieve a full profit in 2020, with a GMV of US $20 billion and a total of 15 million customers.

Jet.com's valuation in the latest round of US $350 million financing in October 2015 was only $1 billion 350 million, far from the Marc Lore20 billion hope, much lower than that of WalMart WAL-MART's $3 billion 300 million acquisition price.

Therefore, the industry is skeptical about the high price of the paction.

Jet.com's investors include China's Alibaba Group Holding Ltd. Alibaba group, Goldman Sachs Group Inc. Goldman Sachs Group and Google Inc. listed entity, its investment department.

WalMart WAL-MART's electricity business in 2015 amounted to $13 billion 700 million, accounting for about 3% of its total revenue of $482 billion a year, while its rival Amazon.com Inc. Amazon earned $107 billion annually.

WalMart WAL-MART electric revenue follows Amazon.com Inc. Amazon and Apple Inc. Apple Corp.

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