Acquisition and merger dealmakers make their livings counseling firms on sales, mergers, and spinoffs. But now, JPMorgan Chase & Co’s investment bankers are operating on an interior contract of their own.
JPMorgan is making a partnership between its retail and consumer, and Internet teams, as per an inner memo delivered this week to employees and seen by the media. It will be referred as the troublesome commerce group, and be headed by Chris Grose, the Internet banker and Jill Woodworth, the retail banker. The memo, inked by Head of technology investment banking in North America, Madhu Namburi, and Global Head of retail and consumer investment banking, Erik Oken, was verified by a JPMorgan spokesperson.
The decision arrives as traditional, large retailers, encountering shrinking market share and slow growth, incline up their digital spending. This comprises latest contracts such as acquisitions of ModCloth, Jet.com, and Bonobos Wal-Mart Stores Inc.; acquisition of Chewy, the online pet store, by PetSmart; and investment in Casper, the mattress company, by Target Corp. The U.S. retail firms invested $17 Billion in 2016 purchasing e-commerce firms, up from $10.4 Billion in 2012 by 63%, as per PitchBook data.
This meeting of technology and retail firms has made founding traditional segment lines fuzzier for agents. For instance, recent acquirement of Whole Foods Market Inc., the grocery store, by Amazon.com has shifted the online retailer nearer to customary brick and mortar. And Peloton, which trades an Internet-linked indoor fitness bike, joins the line between whether it may be served by internet bankers or consumer. This data was given by two of the trusted sources to the media last week.
These types of firms have been wrapped by both the Internet as well as consumer & retail teams in the past at JPMorgan, but the formation of the new group celebrates this procedure, claimed the above cited two sources.