Walmart Inc (WMT.N) has partnered with Canadian e-commerce firm Shopify Inc (SHOP.TO) (SHOP.N), as the world’s biggest brick-and-mortar retailer ramps up its efforts to capture a bigger slice of the coronavirus-driven surge in online shopping.
U.S.- and TSX-listed shares of Shopify, which have doubled in value this year and briefly made the company the most valuable Canadian company in May, were up about 7% in morning trading on Monday.
Online sales at retailers, from cosmetics makers to pizza chains, have boomed in the wake of the COVID-19 pandemic, which has forced customers to stay indoors.
Bentonville, Arkansas-based Walmart said it expected to add 1,200 Shopify sellers to its marketplace this year and that the partnership was focused on adding small- and medium-sized U.S. businesses to its platform, Walmart.com. (bit.ly/2YvxHOg)
Last month, Walmart reported a 74% surge in quarterly e-commerce sales and discontinued operations at e-commerce start-up Jet.com, which it had acquired for $3.3 billion in 2016.
Shopify said the merchants would be able to connect their accounts to their Walmart seller accounts, before they could list their products separately on Walmart’s website.
“Walmart is the 3rd biggest marketplace in the U.S. behind Amazon and Ebay, both of whom are already channel partners for Shopify, so this partnership is a natural next step and frankly, a long awaited one,” Eight Capital analyst Suthan Sukumar said.
Shopify has announced similar partnerships with Facebook (FB.O) and Pinterest (PINS.N) in recent weeks.