Walmart Hits the Reset Button on a Big Part of Its E-Commerce Strategy
Walmart (NYSE: WMT) is making some big changes to its e-commerce strategy. When Walmart's head of U.S. e-commerce Marc Lore joined the retailer after it bought Jet.com, he made a series of acquisitions. Lore's shopping spree was focused on digitally native brands including Bonobos, ModCloth, and Eloquii.
And while Lore's hit a home run with Walmart's online grocery platform, the other side of Walmart's online business hasn't fared as well. Grocery has largely masked the duds, propelling overall digital sales 37% higher in the second quarter. But losses are piling up as Walmart's acquired brands remain largely unprofitable. The e-commerce operations are set to lose $1 billion this year alone.
The losses were enough for management to take a hard look at its portfolio and try to cut some fat. It sold online store ModCloth earlier this month, likely for less than what it paid two years ago. Then it laid off dozens of employees from Bonobos in an effort to boost profitability for the men's clothing brand. It's also reportedly explored the sale of Jetblack, a private-shopper service that loses about $15,000 annually per member.
Source Fool.com
