Amazon and Wal-Mart in secret talks
Online retailer Amazon.com is in secret talks with retail giant Wal-Mart to form a strategic alliance, according to a report in the Sunday Times.
LONDON (Brand Republic) - Online retailer Amazon.com is in secret talks with retail giant Wal-Mart to form a strategic alliance, according to a report in the Sunday Times.
If the talks are successful, a deal could be unveiled within six weeks. The agreement would mean that Amazon would become Wal-Mart’s e-commerce supplier and, in return, Amazon would gain a presence in Wal-Mart’s stores. It would receive a cash injection and a percentage of sales. Neither company has commented on the report.
Wal-Mart has so far failed to create a strong online presence and last week laid off 10% of staff at Walmart.com, a joint venture with venture capital firm Accel Partners. The site will now focus on selling higher-priced items such as jewellery, rather than cheap clothes and cosmetics.
Amazon’s online sales management system would boost Wal-Mart’s online offering, while Amazon would benefit from Wal-Mart’s buying and merchandising power and know-how.
Amazon’s chief executive Jeff Bezos wants to develop Amazon into a multi-category online retailer but, so far, Amazon’s attempts to expand from online book-selling into other areas, such as toys and electronic goods, has left the company with huge losses.
The company’s share price has dropped 83% over the past year, and its market value has plunged from $36bn (£24.5bn) to £3.6bn (2.45bn) in two years.
Amazon shares closed on Friday at $10 (£6.79), down 44 cents on the day.
Latest jobs Jobs web feed
- Account Director - Top London Advertising Agency c£50k Fill Recruitment Ltd c£50k, Central London
- Senior Brand Manager Ball & Hoolahan £55,000 + Car/Car Allowance, London
- Midweight Creative Team - digital and direct The Industry Club London Ltd £35,000, Central London
- Marketing Analyst JV Recruitment £30000 - £40000 per annum, Benefits: Benefits, Halifax
- Midweight Designer Pitch Consultants £25000 - £30000 per annum, West Midlands
- Senior Art Director Pitch Consultants £35000 - £45000 per annum + benefits, Warwickshire