Tag Archive | "Walmart"

Walmart Competes Against Amazon for Flipkart Buy-In, $12 Billion Offered for Controlling Stake

US companies Walmart and Amazon are competing to acquire a controlling stake in Flipkart, India’s leading eCommerce company. Walmart has completed an in-depth due diligence on its proposed majority ownership in the Indian firm. However, rival Amazon also wants to put in a bid and offers a ‘breakup fee’ of $ 1 billion to $ 2 billion, a penalty to be paid in case the deal fails to proceed.

Unnamed sources revealed that Walmart is willing to pay $ 10 billion to $ 12 billion for a controlling stake of 51 percent or more, valuing Flipkart at roughly $ 20 billion. But the deal isn’t sealed yet because Amazon is reportedly interested as well.

Insiders privy to the matter disclosed that Flipkart’s board recently discussed the competing proposals. They seem to agree that Walmart’s offer is better since the US retailer will face fewer regulatory hurdles. On the other hand, Amazon is considered as Flipkart’s primary competitor. It will face tighter scrutiny for possible monopoly since both companies control the majority of India’s online retail market.

Founded by two former Amazon employees, Flipkart is taking on the eCommerce giant to have a piece of India’s expanding online retail market. According to Morgan Stanley estimates, eCommerce in the country is predicted to grow annually by 30 percent and will be worth $ 200 billion by 2026.

Because of its vast potential, Amazon is investing heavily in the emerging market. The eCommerce giant has spent $ 5 billion for its India operations but is losing to homegrown startups like Flipkart that know the market well.

Flipkart announced recent plans to construct a 4.5 million sq. ft. logistics facility in Southern India. This is significantly bigger than Amazon’s largest warehouse measuring 400,000-sq. ft. in the country. But the US online retailer also has 62 fulfillment centers and delivery stations located all over India.

Walmart’s entry will give the startup its much-needed funds to compete head-on with Amazon. Flipkart will also benefit from the retailer’s unparalleled experience in logistics and supply chain management.

The largest US retailer’s stake in Flipkart will depend on which of its shareholders are willing to sell. SoftBank, Tiger Global, and Naspers are just some of its largest investors. Insiders said that SoftBank prefers a deal with Amazon because of its success in online commerce. Tiger and Naspers will likely sell their holdings to Walmart for the right price, according to sources.

As of writing, Walmart, Amazon, and Flipkart have declined to comment on the matter.

[Featured image via Flipkart website]

The post Walmart Competes Against Amazon for Flipkart Buy-In, $ 12 Billion Offered for Controlling Stake appeared first on WebProNews.


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Walmart sending customers to other etailers? It’s not a miracle, it’s Adsense

Sponsored Product Ads on WalmartIn the classic Christmas movie Miracle on 34th Street, Macy’s’ Santa Claus is caught sending customers to competitor Gimbels because making a child happy is more important than making a buck. At first, the Macy’s execs are horrified until they realize that what they’ll gain in goodwill by continuing the practice will actually improve sales over all.

I think Walmart must have been having a “miracle” moment when they agreed to be part of the new Google Adsense for Shopping program.

I searched Walmart.com for a Frozen throw and this is what turned up in the sidebar – ads for related products from OTHER retailers. If you click that blue question mark at the top, this is what pops up:

Walmart.com’s Sponsored Links are provided by the Google AdWords™ program. Companies pay for these links to have their products and services appear with specific search terms. These listings are administered, sorted and maintained by Google.

Clicking on sponsored links will take you away from Walmart.com. The website you link to is not endorsed by Wal-Mart.

This is part of a beta test Google is running to put product ads on third-party sites. Google is in the process of changing all Product Listing Ads into Shopping Campaigns. When you click the right opt-in buttons, your campaign could show up on any one of the retail sites in Google’s Search Network.

This concept is wonderful for the smaller retailer who needs a boost but I don’t understand why Walmart wants to run these ads. Are the earned ad dollars enough to compensate for sending shoppers elsewhere? Or maybe they’re thinking. . . we’re going to lose them anyway because we don’t have what they want so why not take what we can get.

The ad bar was located way down near the bottom of the page, so I doubt most people will even see it but it’s still a little odd.

This third-party expansion by Google is likely a response to the news that Amazon is starting their own Ad Network. When it comes to customer shopping data, nobody has more than Amazon. If they use that to leverage ad sales AdWord execs are going to have more than a few sleepless nights.

In related news, AdWords is about to update their policies regarding the advertising of “dangerous products or services”. In addition to the kinds of items you’d expect, the new rules will also prohibit advertisements for BB guns and paintball guns. You can preview those new rules right here.

 

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Tracy Morgan: Walmart Truck Driver Charged In Deadly Accident

The Walmart truck driver who reportedly caused the accident that killed a comedian and left actor Tracy Morgan and two others in critical condition on Saturday has been charged with one count of death by auto and four counts of assault by auto.

35-year old Kevin Roper turned himself in to police after the accident and was later released on $ 50,000 bail. He has been placed on leave from his job, and Walmart president Bill Simon said the company will take responsibility for the crash if an investigation proves the truck was at fault. Roper reportedly failed to slow down for traffic and swerved, causing his truck to run full into the limo bus that Morgan and a group of comedians were riding in after a performance. A total of six vehicles were involved, but authorities say there were no other injuries.

Morgan was listed in critical condition as of Sunday, but doctors said he was more responsive after having surgery on his broken leg. The 30 Rock actor also suffered a broken nose and several broken ribs.

James “Jimmy Mack” McNair, the victim in the crash, was a close friend of Morgan’s and had worked with him for years.

Sabina Morgan, told the New York Daily News. “He was one of the first comedians that took Tracy under his wing. They were very close,” said Sabina Morgan, Tracy’s ex-wife.

The driver of the limo said he heard Morgan’s screams for help after the car came to a stop but couldn’t get to him or the other passengers. As of this time, McNair’s cause of death hasn’t been released, but his passing has affected the comedy community greatly.

“There may be guys like Tracy who get the fame and notoriety, but you have people like Jimmy Mack who have kind of energized and fueled cats like Tracy and kept them going on the road,” comedian Royale Watkins said.

Image via Wikimedia Commons


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From Father Of Three And Walmart Employee, To Internet Success Story, Joey Kissimmee Explains How He Made It Big Online

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Joey Kissimmee worked at Walmart for ten years. During that time, to make extra cash he went online and managed to bring in a few hundred to a few thousand dollars a month whenever he needed it.

He started with eBay, ordering a CD-Rom from a poster … Read the rest of this entry »

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Walmart to Credit Stores for Online Sales

In retail, the sales goal is the sword by which you live or die and with online sales eating into the holiday profits, it’s going to be a tough balancing act for many a store manager. Next year, though, things will be a little better for the manager at your local Walmart.

Starting on February 1, Walmart stores will be given credit for online sales that originate in their area. AdAge says this is just one part of a huge push to make the retail chain a contender in the online marketplace.

Earlier this year, Walmart switched their Facebook page so it presents results at the local level. They’re also experimenting with a variety of shipping options, including ship-to-store. This option allows consumers to shop online, knowing that when they hit the store for pick-up, they’ll likely buy more items before they leave.

Walmart has also taken a big step into the mobile market with an updated iPhone app and a brand new iPad app.  The iPhone app allows shoppers to make their list using voice or a built-in scanner. They can check local stock, track orders, even download coupons for in-store use.

The iPad app is interesting because traditionally, the Walmart customer is in a much lower economic bracket than your average iPad user. Store spokesman David Tovar told AdAge that iPads aren’t just for the wealthy anymore and that they’re a popular layaway item. And maybe an iPad app will be just the thing to pull in those shoppers who wouldn’t even consider stepping inside a Walmart store.

All of this points to the fact that the king of brick and mortar is taking online seriously and it’s a trend that’s going to continue. More and more shoppers are using their mobile device to buy everything from DVDs to groceries, and any chain not poised to take advantage of that is going to have a hard time.

But Walmart’s tactic is particularly smart because it hits on two big marketing trends, mobile and local. It pushes the convenience of online with the immediate results of in-store. And by giving employees credit for online sales, they’re making everyone a part of the same team. Kind of like when Macy’s Santa Claus sent folks over to Gimbels. In the end, it’s customer satisfaction that counts.

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