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Walmart Acquires Cornershop App for $225 Million, Plans to Resell to Subsidiary Walmex

Walmart Acquires Cornershop App for $225 Million, Plans to Resell to Subsidiary Walmex

Thursday, September 13th, 2018

As the seasons cool down, Walmart’s business dealings continue to heat up. After acquiring Cornershop, the retail giant is expanding its Latin America operations to accelerate its omnichannel capabilities. The acquisition offers Walmart an online marketplace for on-demand delivery from supermarkets, pharmacies, and specialty food retailers in Mexico and Chile, and it gained access to these opportunities for a hefty price: $225 million.

Judith McKenna, President & CEO, Walmart International“We are focused on making life easier for customers and associates by building strong local businesses, powered by Walmart,” said Judith McKenna, President and CEO of Walmart International. “Cornershop’s digital expertise, technology, and capabilities will strengthen our successful businesses in Mexico and Chile and provide learning for other markets in which we operate.”

Bloomberg reports that Walmart will subsequently sell Cornershop’s operations to its Mexico-based subsidiary, Walmex, as a means to bolster the company’s expansion into e-commerce. The news source also notes that Mexico is a hot market right now, with Amazon also eyeing a possible strategic move in the country.

For a whopping $225 million, the company is looking to invest in this new market to bolster its name in the delivery game...

According to a press release, Cornershop—founded by CEO Oskar Hjertonsson, Chief Operating Officer Daniel Undurraga, and Chief Technology Officer Juan Pablo Cuevas—is rapidly expanding, with the number of unique users that are tapping into its online marketplace doubling in the past year.

“This is an opportunity to leverage both of our brands, as well as Walmart’s strong supply chain and store network. 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. We are excited to welcome Cornershop to the Walmart family,” McKenna continued.

Cornershop will likely remain an open platform that delivers from a variety of retailers, pending regulatory approval that will be completed at the end of the year.

Walmart has been on a role with international business plans—having invested in China-based Dada-JD Daojia, as we reported on our sister site, and India-based Flipkart—so it seems the retailer is looking to further boost its influence in the global grocery marketplace. Deli Market News will keep you updated with the latest news in retail happenings that shape our industry.