Walmart acquired Jet.com in September 2016 which raised eyebrows for more than one reason. Some felt they may have spent far more than necessary in the $3.3-billion deal, while others wondered how the family-friendly retail giant would blend the successful, unconventional e-commerce retailer into the fold.
With a reputation for drinking alcohol at the office during company-sponsored “happy hours” which allowed employees to drink at their desk, and by selling a full range of adults-only sex play products, Jet.com appeared to be an anomalous acquisition for Walmart. Yet one year later their e-commerce sales results showed a 63% increase in the last quarter.
It was thought that the non-traditional culture and merchandise of Jet.com could pose a threat to the Walmart name, built on family values. Walmart added a pop-up to “click to confirm age” to the e-commerce site to prevent minors from viewing their selection of adult toys, as most are more “anatomically correct” than those previously sold at Walmart. As well, Walmart at first banned in-office drinking, moving their happy hour activities to local bars but after employees complained and productivity suffered, Walmart reversed their prohibition on drinking at the office.
The acquisition of Amazon’s biggest competitor appears to have been a smart move as Walmart is now the second largest online retailer. They retained Jet’s CEO, Marc Lore, to continue to lead their U.S. e-commerce division and they quadrupled the inventory available for online purchase to more than 35 million items. Earlier this year, Walmart offered free two-day shipping on purchases over $35, undercutting Amazon’s $50 free shipping for non-Prime members. Amazon Prime membership has an annual fee of just under $100 to receive free shipping benefits while Walmart offers theirs without any extra cost once the minimum purchase is attained.
Jet.com continues to operate as a separate business, and in addition to being able to purchase sex toys online, shoppers can also buy groceries, electronics, and furniture while also offering high-ticket luxury items.
