Marc Lore

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Marc Lore
Born
Marc Eric Lore

(1971-05-16) May 16, 1971 (age 49)
EducationBucknell University (Bachelor of Arts)
The Wharton School (Alumni)
OccupationSerial Entrepreneur
Known forFounding Diapers.com (sold to Amazon (company)) and Jet.com (sold to Walmart)
Net worthUS $1B+
TitleEx President and CEO, Walmart U.S. eCommerce
Spouse(s)Carolyn Lore (divorced)
Children2 - Sierra (2000) and Sophia (2003)
Parent(s)Peter Lore, Chiara Lore
Websitewww.linkedin.com/in/marclore

Marc Eric Lore (pronounced LorEE, born May 16, 1971) is an American entrepreneur,[1] businessman, and investor.[2] He is currently the President and CEO of Walmart U.S. eCommerce.[3] He was appointed in September 2016 to lead Walmart's eCommerce division when his company Jet.com, an eCommerce startup launched in 2014, was acquired by Walmart, Inc. for $3.3 billion.[4] Prior to Jet, Lore was the CEO and co-founder of Quidsi, the parent company of a family of websites such as Diapers.com, Wag.com, and Soap.com. Quidsi was sold in 2011 to Amazon (company) for $545 million.[5] He was named regional Entrepreneur of the Year by Ernst & Young in 2011,[6] one of the “smartest people in technology” by Fortune (magazine),[7] and was recently dubbed the LeBron James of eCommerce by Matt Higgins (businessman).[8]

Early life[edit]

Lore was born in Staten Island, New York on May 16, 1971, the son of Peter and Chiara Lore. He is the oldest of three children (Chad Lore, 4 years younger and Brooke Lore, 10 years younger) and spent most of his childhood in Staten Island. When he was ten years old his family moved to the small town of Lincroft, New Jersey.[9]

Growing up his mom was a body builder and personal trainer. During the late 1980s she trained model and actress Julianne Phillips who was Bruce Springsteen’s wife at the time.[10] Lore’s father started a computer consulting company, Chadmarc Systems, named after his two sons. Lore has talked about “having to do something pretty spectacular” to get his father’s attention. As a result, when talking about his successes, he's discussed the mentality of “having to do big things to be loved” as one of his driving forces.[11]

Growing up Lore did every entrepreneurial business a kid could do – mowing lawns, picking weeds, selling newspapers, and washing cars.[9] When he was four years old he told people he wanted to be a farmer when he grew up because they grow stuff from nothing.[12] In seventh grade, Lore got into stocks and began reading books on derivatives and stock options – eventually leading him to start his career in finance.[11] In high school he started a baseball card company called The Mint with his grade school friend, Lax Chandra.[9]

In 1996 Lore qualified for the U.S. National Bobsled Team but chose to go stay with his banking job instead of train, therefore losing his seat on the national team for the 1998 Winter Olympics.

Education[edit]

From fifth until twelfth grade, Lore attended Ranney School in Tinton Falls, New Jersey.[13] Ranney is an independent coeducational, college preparatory day school known for being very diverse. His graduating class had only 34 students. In 1989, during his senior year of high school, Lore became the New Jersey State Champ for the 55-meter dash.

Lore’s classmates called him the human calculator as a young savant with numbers. While sophisticated with math, Lore claims he didn't apply himself and was seen more as a class clown. In high school he and his close friend, and later business partner, Vinit Bharara used to sneak down to Atlantic City and card count at the casinos.[9] Lore has stated that he “didn’t apply himself at all” when it came to school. He's said that he was a sophomore in high school when he first realized you have to actually apply to college – “I always thought you could just pick the school you wanted to go to.”[14]

After graduating high school in 1989, Lore attended Bucknell University. He was on Bucknell’s Track and Field team specializing in the 100-meter, 200-meter, long jump, and javelin events. In 1993 he received a Bachelor of Arts in business management and economics, graduating cum laude and became the first college graduate in his family.[15]

After starting his banking career, Lore enrolled in Columbia University but dropped out one year short of his master of statistics degree. During this time he did complete the Chartered Financial Analyst three-year program.

Lore also enrolled in The Wharton School at the University of Pennsylvania.[16] He dropped out after one year in the MBA program to pursue Diapers.com. It was at Wharton where he met Scott Hilton during a study group – Hilton would later become employee #1 at Diapers.com.[17]

Career[edit]

Early Career[edit]

After graduating college in 1993, Lore began his career at Bankers Trust in New York City. He held various investment banking positions, including vice president of emerging markets risk management at Credit Suisse First Boston and executive vice president of Sanwa International Bank in London, where he was head of the bank’s Risk Management Division.[18]

In 1997, while at Credit Suisse First Boston, Lore and his colleague, Lev Borondovsky, started the Global Association of Risk Professionals (GARP) and founded the Financial Risk Manager (FRM) – a certification for financial risk managers. Today an estimated 50,000 people have earned the certification while the Global Association of Risk Professionals (GARP) has over 150,000 members from 195 countries.[19] Lore and Borondovsky also wrote The Professional's Handbook of Financial Risk Management.[20]

The Pit[edit]

Vinit Bharara and Marc Lore

While at Sanwa, Lore decided to quit his high-paying, senior-level position to become an entrepreneur. Without the business idea, Lore walked into his boss, Jerry Goldstein’s office and resigned. When Jerry asked what he was going to do Lore said, “become an entrepreneur.” He attributed the need to quitting with needing “time to think and go all in."[21] Jerry decided to become his first investor and promised an investment of $50,000 when an idea was formed.[22]

In 1999, Lore co-founded The Pit, Inc., an Internet market-making collectible company constructed as an alternative to eBay.[23] Lore served as CEO and The Pit was sold to the sports collectibles company, The Topps Company, Inc. for $5.7 million in 2001.[24] Following the acquisition, Lore joined Topps as chief operating officer of gaming subsidiary WizKids.[25]

Quidsi (Diapers.com)[edit]

Vinit Bharara and Marc Lore - Diapers.com

In 2005, Lore and longtime, childhood friend Vinit Bharara founded 1800DIAPERS, which would be rebranded as Diapers.com and fall under the parent corporation Quidsi, Inc.[26] Lore served as CEO and according to a 2009 interview, his vision for Diapers was inspired by him and his wife’s experience with the difficulty of keeping necessary baby-care goods in stock.[27] From 2005 to 2012 the company launched a portfolio of websites catering to families, including Soap.com and Wag.com.[28] Lore and Bharara were successful in building a loyal customer base among young parents in urban areas. To improve the economics of shipping bulky, low-margin products like diapers to their customers, they established warehouses relatively close to urban areas to take advantage of ground shipping rates, instituted algorithms to minimize ship cost,[29] and conducted warehouse operations using Kiva robots (now Amazon Robotics).[30] Quidsi was sold to Amazon (company) in 2011 for $545 million.[31]

Lore then worked for Amazon for over two years.[32]

In journalist Brad Stone (journalist)’s book about Amazon and CEO Jeff Bezos, “The Everything Store: Jeff Bezos and the Age of Amazon,” Stone discusses the Quidsi / Amazon acquisition. Stone explains how Amazon had a secretive unit responsible for ordering large quantities of goods from competitors to analyze their businesses. This division became aware of Diapers.com and its parent company Quidsi. Lore and Bharara first denied Amazon’s acquisition offers. According to Stone’s book, Jeff Bezos then sent them a message and proceeded to drop diaper and other baby product prices on Amazon by up to 30%. Stone writes. “As an experiment, Quidsi executives manipulated their prices and then watched as Amazon’s website changed its prices accordingly. Amazon’s pricing bots — software that carefully monitors other companies’ prices and adjusts Amazon’s to match — were tracking Diapers.com.”[33]

As a result, Diapers.com revenue growth eventually slowed under Amazon’s pricing pressure, and “out of fear” the founders engaged in acquisition talks, agreeing to a $545 million buyout.[34] According to Stone’s book, Walmart made a better offer, but it was too late.[35]

Lore has never commented on the story.

Jet.com[edit]

Marc Lore at Jet's Hoboken Office

In 2014, Lore founded eCommerce company, Jet with Nate Faust and Mike Hanrahan.[36] Lore served as CEO and in November 2014, Jet launched a campaign offering stock options to users generating word-of-mouth for the company in advance of launch.[37] In January 2015, Jet was featured in a cover story in Bloomberg Businessweek, in which it was revealed that Jet would be a shopping club in which members will pay an annual fee of $49.99 to access the lowest prices on millions of items,[38] although the membership fee was eliminated in October 2015.[39]

In February 2015 Jet raised $140 million in pre-launch funding from investors including Bain Capital Ventures, Accel Partners, Alibaba Group, New Enterprise Associates, and others.[40]

Beta testers in May 2015 reported cheaper prices than Amazon but longer delivery times.[41] On July 21, 2015, Jet.com opened to the public.[42]

On August 8, 2016, Walmart announced it had agreed to acquire Jet.com for $3.3 billion. Following the acquisition, Lore was appointed president and Chief Executive Officer of Walmart U.S. eCommerce.ref name=WSJJET>Sarah Nassauer (August 8, 2016). "Wal-Mart to Acquire Jet.com for $3.3 Billion in Cash, Stock". The Wall Street Journal. Retrieved August 8, 2016.</ref>

On May 19, 2020, Walmart announced that it was shutting down Jet, directing visitors to use Walmart.com instead.[43]

Walmart[edit]

Since Walmart’s acquisition of Jet and Lore’s team, Walmart's U.S. eCommerce sales have taken off. Prior to the acquisition and Lore joining, Walmart had seen its global eCommerce growth steadily decelerate despite the online channel's growing importance. After its first full year with Lore at the helm, Walmart’s U.S. eCommerce sales grew 44%.[44]

According to Fool.com, “In the three full fiscal years since the Jet acquisition Walmart's eCommerce sales have nearly tripled, jumping 176%. The company has rapidly expanded grocery pickup and delivery and now has about 3,300 stores with grocery pickup and more than 1,850 stores offering grocery delivery, up from just a handful at the time of the Jet acquisition. Under the guidance of Lore, the company rolled out free two-day delivery for orders over $35 without a membership fee to compete with Amazon Prime, and that was accelerated to free one-day delivery last year, shortly after Amazon made the same move in Prime. In the most recent quarter, Walmart expanded ship-from-store capabilities to 2,500 stores, leveraging the power of its store base, and it launched Express Delivery, promising delivery in two hours.”[45]

In 2017, Walmart and Lore announced the launch of Store No. 8, a technology incubator based in the Silicon Valley.[46] The initiative was named after an early Walmart store that founder, Sam Walton, used to try out new retail strategies.[47] At the 2017 Shoptalk conference in Las Vegas, Lore said Store No. 8 will work with startups that specialize in areas that include robotics, virtual reality and augmented reality, machine learning, and artificial intelligence.[48] Lore has also helped Walmart expand its online selection and made a number of acquisitions of digitally native brands like Bonobos.[49]

Investor[edit]

Lore is an investor and recently invested in Archer, an electric vertical takeoff and landing (eVTOL) company focused on advancing the benefits of sustainable air mobility.[50] When asked about why he invested, Lore said, “First of all, vision. They had a really big vision for changing the future of transportation and made a compelling argument why the future of transportation will be these eVTOLs, which will eventually get smaller over time and resemble more of a car-type feel. The idea is that you can travel safely and efficiently, faster than you can today with standard cars. The vision was big. In terms of capital, they'd already done a startup before, I felt like they were good salespeople. I felt like they could sell the vision. I felt like they'd be able to raise the capital. That was a big thing because it would require a lot of capital, and I feel like it can help there. Then on the people side, both the two co-founders exhibited all the traits that I look for. They were incredibly hungry, tenacious, they already have one success, starting a company in Sinus, they had a little taste of it. It wasn't a huge exit but enough to know that they knew what had to be done. They were willing to do whatever it takes. The passion was there, the drive, the tenacity, the big vision, and that's really what it takes.”[51]

Public Image[edit]

Sofia Vergara and Marc Lore at Walmart's Shareholders Meeting 2019

In 2019, actress and entrepreneur Gwyneth Paltrow called Lore a mentor and business coach stating, “He’s an eCommerce wizard and so he is probably the person I reach out to most for specific questions.”[52]

Lore is active on LinkedIn sharing entrepreneurial and business advice almost daily. He hosts a show called Startup Standup that focuses on mentoring female founders.[53]

In 2019, Lore showed up onstage at Walmart’s annual Shareholders meeting alongside Sofia Vergara to discuss Walmart’s latest shipping capabilities and Sofia’s jeans line, Sofia Vergara Jeans.[54]

In 2020, it was reported that Lore was working alongside Jennifer Lopez and Alex Rodriguez in a bid to buy the New York Mets. The deal did not go through.[55]

He was named regional Entrepreneur of the Year by Ernst & Young in 2011,[56] one of the “smartest people in technology” by Fortune (magazine),[57] and was recently dubbed the LeBron James of eCommerce by Matt Higgins (businessman).[58]

After Jet’s acquisition in 2016, Lore made headlines as the highest paid executive in America, according to Bloomberg News’ rankings, leading a top-five that included Apple Inc.’s Tim Cook, Evercore Partners’ John Weinberg, Google’s Sundar Pichai, and Tesla Inc.’s Elon Musk.[59]

Philanthropy[edit]

Jerry Rice, Rich Eisen, and Marc Lore

In March 2020, Lore publicly challenged hall of fame football player, Jerry Rice, to the 40-yard dash as a part of Rich Eisen’s Run Rich Run initiative. Lore pledged $250,000 to St. Jude Children’s Research Hospital and his friend, Michael Rubin of Fanatics, pledged an additional $250,000 to the same cause. Lore beat Rice.[60]

Lore also recently auctioned off a 6-part mentor session as a part of Michael Rubin’s All In Challenge in response to COVID-19. The item ended up selling for over $100,000.[61]

Lore is a philanthropist who gives back to programs like Sanctuary for Families, St. Jude Children’s Research Hospital, YMCA, Beyond Celiac, The Salvation Army, and National Eating Disorders. Lore also recently funded Bucknell University’s first virtual reality experience – giving high school counselors and students a VR-experience to walk the campus.

References[edit]

  1. ^ "Jet.com's Founder Marc Lore: 3 Things You Need to Know About the Man Taking on Amazon".
  2. ^ "With Money From Walmart's Marc Lore, Stealth Startup Archer Buys Its Way Into The Electric Air Taxi Race".
  3. ^ "Exec Bio".
  4. ^ "Confirmed: Walmart buys Jet.com for $3B in cash to fight Amazon".
  5. ^ "10 of the Largest Amazon Acquisitions to Date".
  6. ^ "Ernst & Young Entrepreneur Of The Year® 2011 New Jersey Award Winners Announce".
  7. ^ "The Smartest People in Tech".
  8. ^ "The Future of eCommerce with Marc Lore".
  9. ^ a b c d "Why You Need to Pull Weeds w/ Marc Lore".
  10. ^ "6th Gear of Entrepreneurship with Marc Lore".
  11. ^ a b "Life or Death of an Entrepreneur with Marc Lore".
  12. ^ "When to Risk it All on Your Big Idea with Marc Lore".
  13. ^ "Cum Laude Society Inducts New Members".
  14. ^ "Marc Lore: Persuade Like A Pro".
  15. ^ "Marc Lore '93 returns to campus for 'Innovate Bucknell'".
  16. ^ "Marc Lore's Secret to Serial Entrepreneurship?".
  17. ^ "Walmart Online Unit Seeks New Executive While Losses Pile Up".
  18. ^ "Marc Lore LinkedIn".
  19. ^ "All about GARP: The Organization Behind the FRM® Certification".
  20. ^ "Professional's Handbook of Financial Risk Management".
  21. ^ "Life or Death of an Entrepreneur with Marc Lore".
  22. ^ "Marc Lore - Multi-billionaire & Leader in E-commerce - What it Takes to be a Successful Entrepreneur".
  23. ^ "One School. Three Entrepreneurs. $700 Million".
  24. ^ "thePit.com Press Releases".
  25. ^ "Marc Lore: 10 Things You Didn't Know about Jet.com's CEO".
  26. ^ "Meet Jet CEO Marc Lore, E-Commerce's Pitchman".
  27. ^ "The Way I Work: Marc Lore of Diapers.com".
  28. ^ "RIP Diapers.com, Soap.com, and Wag.com—Amazon is shutting down Quidsi".
  29. ^ "Diapers.com Takes On Amazon in Huggies Delivery-Time Smackdown".
  30. ^ "What's The Secret Behind Diapers.com Success? A Kiva Robot Warehouse".
  31. ^ "Amazon to Acquire Diapers.com for $540 Million".
  32. ^ "Marc Lore LinkedIn".
  33. ^ "The Everything Store: Jeff Bezos and the Age of Amazon".
  34. ^ "The Time Jeff Bezos Went Thermonuclear on Diapers.com".
  35. ^ "The Everything Store: Jeff Bezos and the Age of Amazon".
  36. ^ "Would-be Amazon competitor Jet.com raises $80 million".
  37. ^ "What's it take to challenge Amazon? For Jet.com, giving away equity to lure new users".
  38. ^ "Amazon Bought This Man's Company. Now He's Coming for Them".
  39. ^ "Jet.com Overhauls Business Model, Kills $50 Membership Fee to Broaden Appeal".
  40. ^ "Alibaba Secretly Invested In Amazon Challenger Jet.com".
  41. ^ "Two Retail Veterans Take Aim at Amazon's E-Commerce Reign".
  42. ^ "Jet.com Opens Rivalry With Amazon After a Ragged Trial Period".
  43. ^ "Walmart winds down Jet.com four years after $3.3 billion acquisition of e-commerce company".
  44. ^ "Walmart's $3.3 billion acquisition of Jet.com is still the foundation on which all of its e-commerce dreams are built".
  45. ^ "Jet.com May Be History, but Walmart Got What It Needed".
  46. ^ "Walmart Launches Tech Incubator Dubbed Store No. 8".
  47. ^ "Walmart launches Store No. 8 — but it's not really a store".
  48. ^ "Walmart e-commerce CEO Marc Lore says the company will make more acquisitions".
  49. ^ "Walmart to Buy Bonobos, Men's Wear Company, for $310 Million".
  50. ^ "With Money From Walmart's Marc Lore, Stealth Startup Archer Buys Its Way Into The Electric Air Taxi Race".
  51. ^ "The Future of eCommerce with Marc Lore".
  52. ^ "Jeff Bezos hasn't returned Gwyneth Paltrow's email yet — but here's what she would ask him".
  53. ^ "Marc Lore LinkedIn".
  54. ^ "Walmart highlights growth at shareholders meeting; Lady Antebellum, One Republic among performers".
  55. ^ "Jennifer Lopez-Alex Rodriguez trying to improve last-ditch Mets offer".
  56. ^ "Ernst & Young Entrepreneur Of The Year® 2011 New Jersey Award Winners Announce".
  57. ^ "The Smartest People in Tech".
  58. ^ "The Future of eCommerce with Marc Lore".
  59. ^ "Wal-Mart E-Commerce CEO Gets $244 Million in Pay After Jet Deal".
  60. ^ "Founder of Jet.com Challenges Jerry Rice to Race for Charity".
  61. ^ "Mentorship Package with Renowned Entrepreneur Marc Lore".