(Reuters) - Wal-Mart Stores Inc (N:WMT) is in talks to buy Jet.com, a year-old online rival, as part of a multibillion-dollar revamp of its e-commerce division aimed at boosting online sales growth, the Wall Street Journal reported on Wednesday.
Jet.com could be worth as much as $3 billion (£2.2 billion), the Journal said, citing people familiar with the matter. (http://on.wsj.com/2b2FbPz)
Wal-Mart spokesman Greg Hitt declined to comment and Jet could not be immediately reached for comment.
The world's largest retailer is playing catch up with Amazon.com Inc (O:AMZN) on distribution and technology. The acquisition could give it access to Jet.com's innovative pricing software, its network of warehouses and customer data.
For the past five years Wal-Mart has been on an acquisition spree, buying 15 startups in an attempt to bring in the talent and technology needed to drive e-commerce growth. That includes a social data analysis startup that became its core Silicon Valley technology arm, @WalmartLabs.
While Wal-Mart has not said what it spent on those acquisitions, it has disclosed a total of $3.1 billion for e-commerce and digital projects, such as its platform and new warehouses, in the four fiscal years to January 2017.
Wal-Mart acquired a majority stake in Chinese e-commerce firm Yihaodian in 2012 but sold it in June to JD.com Inc (O:JD), which is China's second-largest e-commerce company.
Despite its investments, Wal-Mart has not projected when its online business might turn a profit and its goal of growing by 20 to 30 percent a year may be tough to achieve.
Wal-Mart's online business has struggled and posted its slowest growth in a year in the latest quarter. Its online sales were $13.7 billion in 2015, according to research firm Internet Retailer.
Wal-Mart said recently that all the changes brought on by the e-commerce reboot, including installing a new technology platform and building new warehouses, contributed to its recent slowdown in growth.
A July 2015 survey by consulting firm Kantar Retail showed the extent to which Amazon had eaten into Wal-Mart's customer base. The survey found that 48 percent of shoppers at Wal-Mart Supercenters were placing orders weekly or monthly on Amazon.com, double the percentage shopping at that frequency on Wal-Mart's own site.
Acquiring Jet could help Wal-Mart in establishing a bigger presence online, analysts said. The startup was launched in July 2015 and has raised more than $500 million in capital from venture capital firms.
Jet's initial strategy was to offer large up-front discounts and the lowest prices on items based on a unique pricing formula that took into account factors like basket size, for an annual $50 fee. But three months after launch, Jet changed strategy and eliminated its subscription model.
Wal-Mart shares closed 0.3 percent lower at $72.94 on the New York Stock Exchange.