Flipkart-owned Myntra-Jabong will continue to operate independently, Walmart international division president and CEO, Judith McKenna reportedly said, eliminating the speculations on its integration with Flipkart’s fashion vertical.
Citing sources, an ET report said that McKenna was in Bengaluru on a two-day visit and she revealed this while addressing a town hall at Myntra. During the meeting, she answered to the concerns raised by the employees regarding merging of Myntra-Jabong’s operation with Flipkart’s fashion unit.
In November 2018, it was reported that Walmart’s decision to put Myntra and Jabong under Flipkart had created uncertainty about the direction of the speciality online retailers who were operating independently till date. According to anonymous sources, Walmart was evaluating the possibilities of integrating roles between Myntra and Flipkart’s fashion business.
McKenna’s visit to India comes in right after Doug McMillon came to India to check upon Flipkart’s initiatives and analyse its progress. During his stay, McMillon also held talks with senior executives in the ecommerce company to discuss business strategies to compete with Amazon.
Related Article: After Canada, Walmart Now Looks To Sell Myntra Brands In US
Prior to this, in November 2018, Myntra and Jabong fully integrated their functions including technology, marketing, category, revenue, finance, and creative teams. The company had also said that, “Myntra’s independence as a business will be “preserved”. The Jabong brand will also be retained”. Jabong was acquired by Flipkart-owned Myntra in 2016 for $70 Mn
However, the companies have been witnessing major restructuring post-merger. In the same month, it was reported that Jabong was looking to fire 200 employees more, after announcing in a town hall meeting that almost 250 workers were laid off as a result of the Myntra-Jabong merger deal.
In January, Myntra CEO Ananth Narayanan had stepped down from his role to pursue external opportunities. In a tweet, Narayanan had said that he will be focusing on the next phase of his entrepreneurial journey. Amar Nagaram was named as head, Myntra and Jabong
Following his exit, Flipkart promoted Rishi Vasudev, the head of its fashion department, to also lead the lifestyle and fashion categories of Myntra-Jabong. Both Nagaram and Vasudev will report to Flipkart CEO Kalyan Krishnamurthy.
The ecommerce giant has undergone a few rounds of leadership changes and restructuring after Walmart acquired the company for $16 Bn. As a result of this deal, Sachin Bansal exited from the company.
Last year, Flipkart group CEO Binny Bansal also exited the company after he was alleged of “personal misconduct.”
While Flipkart bid its founders goodbye, Walmart brought four of its executives, Emily McNeal, Daniel De La Garza, Grant Coad and Dawn Ptak to the team of Flipkart.