Wal-Mart E-Commerce may lose $1 billion this year

According to the latest news from foreign media, Wal-Mart has paid a huge price for e-commerce to catch up with Amazon, which has aroused dissatisfaction within the company. Over the past two years, Wal-Mart, the world's largest supermarket, has invested a lot of resources in e-commerce, rivaling Amazon in some products and even "you have me". But according to the latest news from foreign media, Wal-Mart has paid a huge price for e-commerce to catch up with Amazon, which has aroused dissatisfaction within the company. According to foreign media reports, although Wal-Mart has been investing in e-commerce, such as buying Jet.com for $3.3 billion in an attempt to compete with Jeff Bezos'Amazon, the profitability of the large company has been hampered.

A U.S. science and technology media quoted several sources familiar with the financial situation as discussing reports that Wal-Mart currently expects sales of its U.S. e-commerce department to be between $21 billion and $22 billion this year, with a loss of more than $1 billion. Wal-Mart did not immediately respond to foreign media requests for comment.

Reports say that as the losses of e-commerce teams continue to increase, a sense of disappointment within Wal-Mart is also intensifying. Now the company is reportedly pressing Raul's team, the e-commerce leader, to sell some of the acquired online retail brands. In the past few years, Wal-Mart has made many mergers and acquisitions in order to expand the scale of e-commerce business and get more familiar with young consumers. Foreign media quoted discussions with people familiar with the matter as saying that Wal-Mart had been discussing the sale of Bonobos, a men's and women's retail brand, and Modcloth in recent months.

It is reported that Wal-Mart will probably sell ModCloth at a price below the purchase price this year. However, the company still plans to retain Bonobos. According to foreign media reports, Bonobos, Modcloth and Eloquii, the big fashion brand bought last year, are still in a loss state.

It is reported that Wal-Mart will not buy e-commerce brand at least in the next year. The report quoted three sources as saying, "Unless there is an incredible acquisition opportunity, that is, this opportunity is too good to miss." Instead, the company said it would be more inclined to incubate its own brand, as it did when it created Allswell, the mattress brand. Wal-Mart has previously indicated that it expects its loss in e-commerce business to increase in 2019. The company also recently announced major changes to the acquired Jet website, taking steps to integrate the e-commerce platform more fully into its business. As part of the business restructuring, Simon Belsham, Jet's president, is expected to leave the company in August and his position as president will be completely abolished. At the same time, it is reported that the relationship between Raul and Greg Foran, chief executive of Wal-Mart America, is becoming increasingly tense. Frank leads Wal-Mart's physical store business. According to foreign media reports, Frank hopes Wal-Mart will devote more resources to reducing commodity prices rather than building e-commerce brands. The report says Fran is increasingly frustrated by Raul's praise for the growth of Wal-Mart's online grocery business. In fact, Wal-Mart's online grocery business is more dependent on physical supermarket stores. It is doubtful how long Wal-Mart's legend will last. In February 2018, Raul, Wal-Mart's head of e-commerce, said to the media that he would "never" leave the company and that things were "just beginning". There had been rumours that he was considering leaving. Following Wal-Mart's acquisition of Jet, Raul joined Wal-Mart and agreed to stay for five years until the autumn of 2021. It's worth mentioning that Wal-Mart's gambling on e-commerce also exceeds that of the United States. In India, Wal-Mart bought Flipkart, the largest e-commerce website, for billions of dollars, and launched a "dragon-tiger battle" with Amazon India. However, it has recently been reported that Flipkart will be ready to go public within a few years, and Wal-Mart will withdraw some of its stake through the listing. Recently, the Indian government has also disappointed Wal-Mart with some restrictions on foreign investment in e-commerce.

Wal-Mart kept up with Amazon in e-commerce. In April, Amazon announced that it would offer the next day's service (previously two days) to all package members. In May, Wal-Mart announced that it would launch a free next-day service without annual membership fees (with a certain threshold for the amount of shopping), which would cover three-quarters of American consumers by the end of this year.