Walmart has decided to go head-to-head with Amazon in Mexico’s grocery industry.
Just a month after the online retail giant began selling non-perishable goods online in Mexico, the world’s largest retailer announced yesterday that it’s acquiring Cornershop.
Cornershop is Latin America’s leading online grocery delivery platform. With a deal reported to be in the region of $225 million, it aims to step up Walmart’s omnichannel efforts in Mexico and Chile.
This move follows Walmart’s $500 million investment in the Chinese online grocery firm Dada-JD Daojia, and its tie-up with Rakuten’s Kobo — its answer to Amazon’s Kindle devices.
Founded in San Francisco three years ago, Cornershop is a major player in Mexico’s grocery industry which can help speed up Walmart’s delivery time for Superama, Sam’s Club, and its namesake store in Mexico.
Walmart said the digital expertise and capabilities of Cornershop will help bolster its operations internationally.
“Combining Cornershop’s innovative, crowdsourced delivery platform with Walmart’s unique assets will allow us to accelerate growth for both companies, delighting our customers by saving them both time and money.” – Judith McKenna, President and CEO of Walmart International
Analysts predict a spike in Walmart’s online sales
Walmart’s acquisition of Cornershop received positive reactions from market analysts. Many of them predicted that this initiative will surely result in an online sales spike for the company.
Once the deal has been finalized by the end of the year, Walmart is expected to sell Cornershop to its Mexico division, Walmex, whose shares increased more than 3% on the news, closing at its highest level since July.
The company has clarified that the delivery app will remain an open platform and available to various grocery firms and food retailers.