Acquisition and takeover done by Walmart

In the world of competition big fish eats small fish. Merger and Acquisition are strategic tools
used time to time by companies to get the cutting edge over competitors and capturing the
market. The concept of acquisition and merger is always backed up by the concept of strategy
thinking and growth of the market size, internationalfoot print of the organization.

There are some golden rules which can be treated as the Strategies for Successful Merger or
Acquisition Deal. Before entering into any merger or acquisition deal, the target company's
market performance and market position is required to be examined thoroughly so that the
optimal target company can be chosen and the deal can be finalized at a right price. This means
is that you should look at a company carefully so that you don't pay more than it's worth.

Walmart has continuously grabbing the market share all over the world by acquiring the various
origination to mark the presence all over the world, acquisition is one of the best strategy a
company can execute. The price of the deals are less than if we compare the volume or the
market capitalization done by the Walmart. By expanding the business and acquiring the various
companies all over the world Walmart has beaten the competition.

The following table shows the various acquire organization taken over by Walmart-
Acquired Organization Acquire Date Price
Flipkart 9th May 2018 $ 16 Billion
Parcel 29th Sep 2017 -
Bonobos 16th June 2017 $ 310 Million
Moosejaw 13th Feb 2017 $ 51 Million
Shoes.com 30th Dec 2016 $ 70 Million
Jet 19th Sep 2016 $ 3.3 Billion
Yihaodian 22nd July 2015 -
Reclip.It 1st Oct 2013 -
Massmart 29th Nov 2010 -

Walmart is giant in the retail store with multinational presence and acquired many companies in
different regions of the world to operate and grab the market share to beat the competition. The
deal of Walmart and Flipkart was the biggest deal in the startup E-com market. The 77% shares
of Flipkart was taken by Walmart by paying $16 billion.In the deal of Walmart – Flipkart, it is a
long term bet on the Indian market and a step ahead from Amazon. Some strategic decisions are
for long term, if we look at the current scenario the deal is big, investors of Walmart are no so
happy, there is a dip in the stocks of Walmart after the deal. But this is not for the first time,
Walmart has acquired many organization earlier to win the game.
Below, we'll look at 5 major Walmart acquisitions-

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Jet.com
 Type of Business: E-commerce
 Acquisition price: $ 3.3 billion
 Date purchased: September 19, 2016

Founded in 2014, Jet.com is one of the fastest-growing U.S. e-commerce companies. Walmart
acquired Jet.com for about $ 3.3 billion in 2016 to compete with Amazon.com. Prior to the
acquisition, Jet.com was an independent company. As part of the deal, Jet.com founder Marc
Lore joined the Walmart executive leadership team. Aided by its new e-commerce business,
Walmart reported FY 2020 U.S. e-commerce net sales of $ 21.5 billion, up 36.9 % year-over-
year (YOY). Those investments have paid off as e-commerce growth. Last year, e-commerce
sales grew by 37 %. During the coronavirus pandemic, they shot up by 74 % in the first quarter
and attracted customers who tried its online services for the first time.

ShoeBuy
 Type of Business: E-commerce
 Acquisition price: $ 70 million
 Date purchased: December 30, 2016

ShoeBuy, now rebranded as Shoes.com, was launched in 1999 as an online footwear retailer. The
company was purchased by IAC in 2006 (disclaimer: IAC is the parent company of
Investopedia). In 2016, Walmart subsidiary Jet.com acquired ShoeBuy from IAC for
approximately $ 70 million. This acquisition took place just months after Walmart acquired
Jet.com. The acquisition of ShoeBuy is an indication that Walmart is looking to strengthen
Jet.com and expand its consumer offerings. This deal marks a key expansion for Jet.com into
footwear retailing, an area previously not represented by the online retailer. It also represents a
move by Walmart to provide a comprehensive e-commerce experience similar to Amazon.

Parcel
 Type of business: Deliveries
 Acquisition price: Undisclosed
 Date purchased: September 29, 2017

Parcel is a technology-based package delivery company that uses routing algorithms to facilitate
same-day delivery of meal kits, groceries, e-commerce products, and more. The company,
founded in 2013, was independent at the time of its acquisition by Walmart. For Walmart, the
deal represented a way to boost its online infrastructure and delivery capabilities, particularly in
New York City, which is among the most popular markets for its online retail branches. Also,
Parcel will continue servicing its current clients and adding others, operating from its New York
City headquarters where it can accelerate and scale over time.

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Bonobos
 Type of business: Online apparel brand
 Acquisition price: $ 310 million
 Date purchased: June 16, 2017

Launched in 2007 as an internet-based apparel brand, Bonobos eventually expanded in 2012 to

include a growing number of brick-and-mortar locations as well. The company was independent
at the time of its acquisition by Walmart in mid-2017. After the takeover, Walmart appointed
Bonobos founder and CEO Andy Dunn to lead Walmart's effort to help boost sales of online
consumer brands. The Bonobos deal came a few months after Walmart had acquired another
online apparel company, ModCloth, although it later it was sold.

Moosejaw
 Type of business: Online outdoor retailer
 Acquisition price: $51 million
 Date purchased: February 13, 2017

Specializing in outdoor recreation gear and apparel, Moosejaw was founded in 1992 and
ultimately developed a retail presence primarily online. At the time of its purchase by Walmart in
2017, Moosejaw counted a number of private equity firms as major stakeholders. Under
Walmart, Moosejaw was allowed to operate as a standalone brand. It retained its site and
physical stores, as well as its operations in Michigan. The deal expanded Walmart's presence in
the market for outdoor market recreational gears at a time when Amazon was also growing
rapidly.
Financial Situation Of Walmart (Annual Revenue)
Year Annual Revenue ($)
2012 $ 446,509
2013 $ 468,451
2014 $ 476,294
2015 $ 485,651
2016 $ 482,130
2017 $ 485,873
2018 $ 500,343
2019 $ 514,405
2020 $ 523,964
2021 $ 559,151
2022 $ 572,754

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From the table we can see Walmart annual revenue history and growth rate of last 10 years from
2012 to 2022. Revenue can be defined as the amount of money a company receives from its
customer in exchange for the sales of goods or services. Revenue is the top line item on an
income statement from which all costs and expenses are subtracted to arrive at net income.

 Walmart annual revenue for 2022 was $ 572,754 B, 2.43 % increase from 2021.
 Walmart annual revenue for 2021 was $ 559,151 B, 6.72 % increase from 2020.
 Walmart annual revenue for 2020 was $ 523,964 B, 1.86 % increase from 2019.

Walmart finished fiscal 2022 with 10,566 stores overall, including 4,742 Walmart U.S., 600
Sam’s Club and 5,224 international locations. The company had closed out fiscal 2021 with
11,443 stores worldwide, with 4,743 Walmart U.S., 599 Sam’s Club and 6,101 international
locations.

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