Walmart is acquiring an Israeli-founded startup in the business of developing virtual optical try-on technology.‍

US retail giant Walmart is set to acquire Memoni, an augmented reality (AR) startup founded by Israeli entrepreneurs to expand its array of virtual try-on services for customers. Memomi is a current Walmart partner and has provided digital measurements for Walmart customers since 2019. Although the fee of the deal is currently undisclosed, Walmart has announced the finalisation of terms with Memoni.

About Memomi

Memomi was founded in 2014 by Ofer Saban and Salvador Nissi Vilcovsky. It has corporate offices in Paris and Tokyo and its headquarters in Palo Alto, California.

Memomi built an AR platform that allows customers to "try on" items or clothing and get customised suggestions based on their unique styles and preferences. The startup also created a smart magic full-size mirror called the Memory Mirror, which allows shoppers to cycle through various options digitally while reviewing their try-on sessions. These mirrors were installed in several Neiman stores in the US in 2019. Memomi has also collaborated with other retailers and luxury brands such as L'Oreal, Sephora, Dior, La Mer, and Lancome.

Memomi has worked with Walmart since 2019, enabling digital eyecare measurements for customers in more than 2,800 Walmart Vision Centres and 550 Sam's Clubs (a Walmart subsidiary). Vilcovsky, who serves as Memoni CEO, expressed how the company was looking forward to "offering its innovations and user experiences on a larger scale both in-store and online."

Walmart's recent strategic acquisitions

The acquisition suggests Walmart is ready to expand its market size and compete better with companies such as 1-800 Contacts and online brands like Warby Parker.

Memomi's acquisition will be Walmart's third purchase of an Israeli-founded firm. In 2019, Walmart also purchased an Israel-based startup. Since then, Walmart has used Aspectiva's artificial intelligence and natural language processing technologies to analyse consumer opinions and ultimately create a better shopping experience

In 2020, the retail giant bought Israeli virtual fitting platform developer Zeekit, leveraging the tech on the Walmart app and Walmart.com in March. In June, Walmart also launched an AR feature that allows users to view furniture and other home interior items in their own space.

When will Walmart finalise the acquisition?

According to Walmart, "the acquisition is the next step in Walmart's journey of providing personalised and affordable access to optical care." David Reitnauer, VP of Specialty Services at Walmart Health & Wellness, reiterated," This acquisition is in tandem with our Health & Wellness mission to offer accessible care to the communities we serve."

The acquisition is set to be completed in the coming weeks, and this will see Memomi employees, including Saban and Vilcovsky, integrated into Walmart Global Tech.

How will Memomi's acquisition affect the $WMT stock price?

Walmart grew by over 2% and recorded a revenue of $572 billion at the end of its last fiscal year. In addition, it ended 2021 strongly as its net sales exceeded $150 billion. However, the $WMT stock has not recovered from a free fall that saw it decline by over 20% in May. With $WMT currently trading at $121, the news of another AR acquisition couldn't have come at a better time. Investors will not be wrong to expect higher dividends when Memomi's services become fully integrated in the coming months.

A daily chart of $WMT stock on 01/07/22

Conclusion

Acquiring Memomi will allow Walmart to expand its tentacles and compete in a broader market. In addition, by bringing its technology partner home, they can work better with a common goal and purpose for their future development plans.

Summary

• Walmart is set to acquire Memomi, an augmented reality (AR) startup founded by Israeli entrepreneurs.
• Memomi built an AR platform that allows customers to "try on" items or clothing and get customised suggestions and has partnered with Walmart since 2019.
• The acquisition is set to be completed in the coming weeks, and this will see Memomi employees integrated into Walmart Global Tech.
• Investors will hope the acquisition helps $WMT bounce back from its decline in Q3 2022.

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