Walmart had inadequate response to Amazon.com for years but the $3 billion acquisition of jet.com and overhaul of its marketplace last year, and better integration of its stores with its digital business has been good. The result was a 60% growth in U.S. e-commerce sales at its namesake chain last quarter.
Walmart says domestic e-commerce sales should rise 40% in the fiscal year ending in early 2019. Last year, Walmart tapped jet.com CEO Marc Lore to head up its U.S. efforts after online sales growth had slowed under his predecessor. The company has also been on a shopping spree, snapping up smaller e-commerce players like ModCloth, Moosejaw, and Bonobos.
“We still believe Amazon’s lead in online retail is insurmountable,” said Moody’s retail analyst Charlie O’Shea. “However, Walmart continues to widen the gap between itself and all other brick-and-mortar retailer by leveraging its unmatched physical resources.”