Improvements to customer services and pricing are part of Wal-Mart’s e-commerce plan, according to a Marc Lore memo.

(Bloomberg)—Wal-Mart Stores Inc. is overhauling its e-commerce team and elevating executives from its recently acquired business, aiming to better challenge Inc. with more selection and lower prices.

The changes are meant to make Wal-Mart, No. 4 in the Internet Retailer 2016 Top 500 Guide, more “customer-centric,” Jet founder Marc Lore, who is now CEO of Wal-Mart’s e-commerce operation, said in a memo Friday that was obtained by Bloomberg. Wal-Mart bought Jet in September for about $3.3 billion, turning to the startup to bolster an online operation that has lagged Amazon.

“We’ve talked a lot about becoming a more customer-centric organization,” Lore said. “Our strategy is about offering more choice, competitive prices—particularly on food and consumables—and operating on the strength of the world’s most efficient e-commerce supply chain.”

The company is streamlining its web team so that it can serve customers whether they shop online, via smartphones or in stores, according to the memo. Key promotions include naming Scott Hilton to the role of chief revenue officer, charged with aligning the company’s various online retail, marketplaces and digital stores. Jeremy King, meanwhile, of @WalmartLabs, has been promoted to U.S. chief technology officer, bringing together Wal-Mart’s retail and e-commerce technology teams.

A new incubation and strategic partnerships division will be led by Seth Beal, who will focus on identifying areas that have the most growth potential.


Wal-Mart is under increasing pressure as Amazon (No. 1 in the Top 500) pushes deeper into the grocery business. Big-box retailers have traditionally used food to draw shoppers into stores, with hopes that they buy electronics, clothing and other goods with higher-profit margins.

But now Amazon may pick off more of those customers. The online giant is even targeting food-stamp recipients under a pilot program to begin this summer. Wal-Mart is responding to the threat with its Fresh service, offering delivery of fresh food without a membership fee.

The memo shows that Wal-Mart is looking to match Amazon’s reputation for being customer-focused. The company will create a new team to handle customer issues, returns and fraud prevention—a more critical concern as Wal-Mart relies more on third-party merchants selling on its marketplace.

“We’re on a mission to reshape e-commerce and create a best-in-class shopping experience that empowers customers to save money in completely new ways,” Lore said in the memo.