YearBig-box retailer Walmart stands to lose a lot of money this year, according to a new report from Vox’s Recode.
The report published on Wednesday, has revealed that Walmart is expected to lose a minimum of $1 billion in its e-commerce division. The report also said the company could sell off money-losing units.
Vox’s Recode cited multiple sources and has claimed that the retail giant is struggling to compete with Amazon. Walmart’s e-commerce unit is projecting losses of over $1 billion on revenues between $21-22 billion, Vox said.
The report also stated that Walmart is frustrated with its online shopping site Jet, which the company acquired for $3.3 billion in 2016. Vox said the losses from this site have put CEO Marc Lore’s position as leader on the hot seat.
According to Vox, Walmart’s board of directors and CEO, Doug McMillon, want Lore and his online business to cut losses.
Walmart will look to sell at least one of its three unprofitable fashion brands that was bought under Lore says Vox. Bonobos for $310 million, Eloquii for $100 million and Modcloth for less than $50 million.
Despite its struggle to head off with Amazon, Walmart had recently reported strong quarter results with a 43% boost in online sales.
Disclaimer: We have no position in Walmart Inc. (NYSE: WMT) and have not been compensated for this article.