Wal-Mart might venture into a strategic alliance with Amazon.com, the online retailer, according to newspaper reports in the UK.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Sunday Times paper claims that Lee Scott, Wal-Mart’s chief executive, and Jeff Bezos, Amazon’s billionaire founder, are in secret talks to join forces???. The paper suggests that a deal could be on the cards within six weeks. Both companies declined to comment on the issue.
Amazon would become Wal-Mart’s e-commerce supplier, under the terms of the deal, while Wal-Mart would gain access to the e-tailer’s expertise in managing the retail chain, from online ordering to home delivery.
The move would allow Amazon to gain a presence in Wal-Mart’s 4,500 stores across the world, a cash injection and a percentage of the sales it makes through the retail giant. Amazon already operates an online deal with toy retailer, Toys R Us, where it maintains the site and handles delivery while Toys R Us is responsible for merchandising.
Wal-Mart is keen to expand its online activities but previous attempts to make its presence felt on the Internet have failed. Last week Walmart.com laid off 24 employees, 10% of its workforce. The entire site was taken down for most of October last year but is consistently ranked among the most-visited e-commerce sites in the US.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe deal will increase speculation that Wal-Mart might take an equity stake in Amazon.
