Walmart responded on Thursday to a lawsuit alleging the company reported misleading results for its online sales in a bid to catch up with Amazon. In a statement to Cheddar, the retail giant said: >“This litigation is based on allegations by a disgruntled former associate, who was let go as part of an overall restructuring. We take allegations like this seriously and looked into them when they were brought to our attention. The investigation found nothing to suggest that the company acted improperly. We intend to vigorously defend the company against these claims.” The statement came after Tri Huyn, a former director of business development at Walmart, said the company pursued an “overly aggressive push to show meteoric growth in its e-commerce business by any means possible -- even, illegitimate ones.” That allegedly included paying third-party vendors lower commissions and failing to process customer returns. Huyn claims he was fired in January 2017 after voicing his concerns. Walmart, under the leadership of CEO Doug McMillon since 2014, has made a concerted effort to grow its e-commerce business. It acquired Jet.com for $3.3 billion in 2016 and added on niche fashion labels and introduced free two-day delivery. Throughout last year, it seemed like those moves gave Walmart.com the heft and momentum it needed, with the company reporting high double-digit growth for its online unit. But that slowed markedly during the holiday season, coming in at 23 percent in Q4 compared to 50 percent the previous quarter. Hours before news of the lawsuit broke, Cheddar spoke with Carter Cast, the former CEO of Walmart.com, who said he’s bullish on Walmart’s ability to beat out Amazon in the “omni-channel retail” space. “The customer wants to buy when they want, how they want, through whatever channel they want.” Cast said the world’s largest retailer should leverage its brick-and-mortar stores, instead of just chasing Amazon, and offer a richer shopping experience where customers can reserve inventory, for example. “Walmart will do well because of those physical stores,” he said. “They have an advantage in having their locations there. What they will do, I believe, is make their asset more productive by using the internet.” Cast offered no comment when called for a response to the suit.

Share:
More In Business
A US tariff exemption for small orders ends Friday. It’s a big deal.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines’ new policy will affect plus-size travelers. Here’s how
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Load More