WAL-MART series of big action ready to revive the electricity supplier business

BI Chinese station on August 28th reported

in the past year or so, WAL-MART’s online sales growth has been declining.

its electricity supplier business growth rate fell from second in the last quarter of to the same period in the third quarter of 10%, and then fell to the number of consecutive quarters of a figure growth. In the last quarter, WAL-MART’s electricity supplier business began to rebound, there has been an annual growth rate of 12%.

, however, a quarter of sales growth does not mean that it has begun to recover. Now, WAL-MART’s electricity supplier sector is making a series of new big moves, ready to revive its electricity supplier business.

stripped heavy burden

WAL-MART operates a website called "shop 1" in china. In 2012, WAL-MART acquired a 51% stake in store number 1; last year, it spent $760 million acquisition of the remaining 49% of the shares. Later, due to poor management, WAL-MART will sell 1 to Jingdong, in exchange for the mainstream of China’s electricity supplier company’s shares of 5%. At the time of the signing of the agreement, the value of these shares is about $1 billion 500 million, equivalent to the price of WAL-MART’s acquisition of shop No. 1.

in the past year, WAL-MART did not increase the value of shop 1, which indicates that its sales slowed down. It is working with Jingdong to help promote its sales, because the development of Jingdong in China is very successful. WAL-MART stripped its slow development of its assets from the electronic business platform, but also conducive to its development. This will not boost sales growth, but it will improve financial figures.

is likely to contribute to sales growth is WAL-MART and other provisions of the Jingdong agreement. According to the agreement between them, WAL-MART will build a store on the Jingdong website – Sam member store. In addition, Jingdong will be listed as WAL-MART’s electronic platform O2O JV Dada priority retailers.

 

introduction of external boost

earlier this month, US $3 billion in cash and $300 million acquisition of WAL-MART stock business website Jet.com. Jet.com is one of the fastest growing electricity supplier startups in the United states. Shortly after the acquisition, it increased sales of about $1 billion to WAL-MART. This is equivalent to WAL-MART’s 2015 electricity supplier sales increased by about 7%.

at the time of the acquisition of the start-up company, WAL-MART also hired Mark • (Marc Lore) to lead its electricity supplier business. Rolle not only founded the Jet.com, but also founded the e-commerce company Quidsi, the company owns the website, including Diapers.com, Soap.com and Wag.com. Later in 2011, Amazon acquired Quidsi. WAL-MART’s former electricity supplier in charge of Neal • • • (Ashe)