Wal-Mart is buying the retail online startup to jump-start growth of its e-commerce operations. Fred Katayama reports.
Wal-Mart is buying e-commerce start-up Jet.com. It's shelling out $3.3 billion for a company that just launched its online store one year ago. With the investment, the world's largest retailer hopes to become a powerhouse online shopping destination and better compete with Amazon.com. The deal comes amid slowing online sales growth at Wal-Mart over the past few quarters. Lead retail analyst Charlie O'Shea at Moody's: (SOUNDBITE) CHARLIE O'SHEA, LEAD RETAIL ANALYST, MOODY'S, (ENGLISH) SAYING: "Wal-Mart gets to jump start its e-commerce business, which is pretty good for a brick-and-mortar retailer, but it can always get better. And this gets it better quickly." O'Shea says Wal-Mart will gain talent and technology from Jet, especially its pricing algorithm. That technology cuts prices as customers add items to their shopping carts. The company will continue to operate Jet.com and Walmart.com as separate websites.