Source: Walmart
Despite wide external praise for accelerating online growth, Walmart is frustrated internally by the steep losses it has incurred by online operations and its struggles trying to catch up to Amazon.com.
According to a report that came from multiple sources:
- Walmart’s U.S. e-commerce division is expected to lose more than $1 billion this year on revenue of between $21 billion and $22 billion. The losses run counter to Walmart’s longstanding commitment to profitable ventures.
- All three of Walmart’s digital-native apparel companies, Bonobos, ModCloth and Eloquii, are unprofitable, and ModCloth is expected to be sold this year in a cost-cutting move. Walmart is putting purchases of additional digital-native brands on hold for at least the next year unless a can’t-miss opportunity arrives.
- Greg Foran, president and CEO, Walmart U.S., is pushing for more practical investments, such as reducing prices, over digital initiatives that may not scale. He also believes Marc Lore, who leads Walmart's online operations, is getting too much credit for growing online grocery when the business relies heavily on curbside pickup.
- Inside the conflict at Walmart that’s threatening its high-stakes race with Amazon – Recode
- Walmart Looks To Sell ModCloth, Will Keep Bonobos – Pymnts
- Walmart said to lose over $1B, weighs selling off money-losing online units – Yahoo Finance
- Walmart’s e-commerce biz is reportedly racking up $1 billion in losses and that’s only one problem it has – CNBC
- Jet.com falls by wayside as Walmart focuses on its website, online grocery – Reuters
- Walmart posts best US comps in 9 years – Retail Dive
- What is Jet.com’s future after its reorg within Walmart? – RetailWire