Market Overview

4 Pieces Of Advice For Wal-Mart Now That Acquisition Officially Closed

4 Pieces Of Advice For Wal-Mart Now That Acquisition Officially Closed

Wal-Mart Stores, Inc. (NYSE: WMT)'s $3.3 billion acquisition of closed Monday, but the retailer's woes won't go away overnight.

Bloomberg Gadfly's Shelly Banjo offered four pieces of advice for Wal-Mart that could help close the gap between its online business and, Inc. (NASDAQ: AMZN).

1. Focus On The Customer

Amazon ignored its bottom line for years in favor of gaining market share. On the other hand, Wal0-Mart has focused on turning a profit, one of the reasons why it loses to Amazon in online sales.

Meanwhile, Jet's entire business model of driving down costs for consumers serves as a hint that "Walmart might continue to pursue profits over pleasing customers."

Banjo further suggested that Jet's business model is also similar to those of daily deals and auctions. Moreover, "jumping through hoops" such as receiving a discount for opting out of a warranty or paying by debit card to lower a retailer's cost "shouldn't be a shopper's job."

Related Link: How Does Target's New $5 Billion Buyback Plan Stack Up Against Other Retailers?

2. Pounce On Amazon

Part of Amazon's popularity is due to its marketplace that connect consumers with smaller merchants. However, behind the scenes, Amazon's relationship with third-party merchants is quite poor in some cases.

Wal-Mart should start "luring" sellers away from Amazon and "pounce on existing seller frustration" with Amazon.

Jet's business was built on the premise of selling others' brands and could help Wal-Mart in this case.

3. Focus On Neglected Categories

Consumers typically don't care for brand names when it comes to home goods and decor. Wal-Mart could focus on these categories considering Amazon relies on third-party sellers to instead of building out the category on its own.

4. Take Advantage Of 'Street Cred'

Simply put, Wal-Mart's acquisition of Jet gives it "some short-term street cred to mount an aggressive attack on Amazon." As such, Wal-Mart needs to give Jet's CEO Marc Lore the "room and funds" to upgrade Wal-Mart's supply chain.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!


Related Articles (AMZN + WMT)

View Comments and Join the Discussion!

Posted-In: Bloomberg Gadfly Marc LoreAnalyst Color M&A News Movers Media Best of Benzinga

Latest Ratings

ETNMorgan StanleyMaintains130.0
ESMorgan StanleyMaintains81.0
EIXMorgan StanleyMaintains66.0
EDMorgan StanleyMaintains69.0
DUKMorgan StanleyMaintains93.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at