It’s Steve here, filling in for Jessica who’s on vacation. Walmart’s $3.3 billion purchase of Jet.com has prompted debate about whether the deal is a sign that Jet failed or not. A more interesting question is the impact Jet CEO Marc Lore will have on Walmart.com, which he’s taking over. Specifically, can Mr. Lore change Walmart’s mindset about how to compete with Amazon?
While Walmart and Amazon appear to be in the same business—they both sell you stuff—Amazon is playing a completely different game. Walmart is a retailer, focused on moving inventory quickly. While Amazon does that, it’s also running a fast-growing fulfillment service for other retailers, renting out its network of warehouses, sorting centers and carrier relationships.