Amazon is the undisputed Godzilla of U.S. e-commerce, but Walmart is hoping its August 2016 acquisition of Jet.com (along with nabbing ShoeBuy.com and Moosejaw.com more recently) will arm it with the ammunition to compete on equal terms. Walmart’s earnings call on Tuesday provided some evidence that its moves are beginning to pay off. While the retail giant’s Q4 revenue fell just short of analyst expectations, e-commerce revenue grew 29 percent compared to the same period last year.
When Walmart acquired Jet.com, it tapped Marc Lore, Jet’s founder, to head its e-commerce efforts and implement innovative technology around algorithmic pricing Jet had created such a splash with.
“We are seeing the benefits of our e-commerce investments,” Walmart CFO Brett Briggs said during Tuesday’s earnings call. “During the holiday period, the e-commerce fulfillment network performed very well, supporting record volumes with on-time delivery rates that far exceeded last year. This network is also the backbone of the new free 2-day shipping promise with a $35 minimum order available at Walmart.com. Customers are responding well to this new offer, and e-commerce sales have strengthened since its launch on January 31. Looking ahead, you’ll continue to see us make investments in e-commerce to drive traffic and improve the customer value proposition. We’re excited about the things we’re doing, the speed at which we’re doing them, and the work we still have to do.”
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