Walmart's reputation for low prices partly explains its acquisition of Jet.com, which proved to be a leader in dynamic pricing models for e-commerce. Dynamic pricing was behind Jet's strategy to beat Amazon on price.
“Walmart bought three things with Jet,” said Neil Stern, senior partner with McMillanDoolittle, told SN. “They bought talent. They bought an algorithm. And they got Jet itself, a different brand with a slightly different shopper base. I think they feel that will help broaden their appeal.” In a blog post published earlier this week, Walmart CEO Doug McMillon characterized the shopper bases as “complementary.” “Jet.com is a hit among urban Millennials, and it will continue to focus on delivering premium brands and experiences,” he said. “Walmart.com is winning value-conscious shoppers with everyday low prices by keeping costs low.”