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Business

Jet.com President Simon Belsham to go down as Walmart eliminates the role




Simon Belsham, president of Jet.com

Adam Jeffery | CNBC

More than two years after Walmart bought Jet.com, the discount dealer is taking steps to integrate the e-commerce platform into its own business.

As part of the changes, Simon Belsham plays the role that Jet President will be eliminated, and Jet team leaders will now report to Kieran Shanahan, who has overseen Walmart's food, consumer goods and health and wellness departments online.

Walmart, who announced the changes to a blog post on Wednesday night, said it would merge the rest of the Jet teams, including retail, marketing, technology, analytics, product and more, within Walmart.

"We do not have the same need for a dedicated leader," said Jet Lore, Jet.com's partner, who now serves as head of Walmart's e-commerce business in the United States.

Belsham

A Walmart spokesman told CNBC that no redundancies are planned for these steps, and Jet will keep his headquarters in Hoboken, New Jersey.

"This natural evolution of integrating an acquisition allows us to fully utilize Walmart's resources for Jet and exploit Jets talent for Walmart," Lore said.

Since Walmart bought Jet for around $ 3 billion at the end of 201[ads1]6, it has done a little less integration, like combining its supply chain teams to fall under Jet.com co-founder Nathan Faust. Faust and Lore both came from Quidsi, another startup Lore co-founder who was sold to Amazon in 2011 for $ 550 million. (Amazon later turned off by Quidsi.)

Lore said the supply chain changes have helped Walmart grow the overall e-commerce sales on a fast cut and ultimately move toward offering free delivery today.

Jet has already been through some management shake-up before. It lost its former president, Liza Landsman, last year. She had been named in this position after Lore became head of e-commerce for Walmart, but later left working as a venture capitalist. That was when Belsham entered.

Meanwhile, Walmart has confirmed its market efforts for Jet, which has focused on targeting thousands of customers, to focus more on growing Walmart.com. The company has previously been criticized by analysts for not increasing Jet sales as quickly as anyone had hoped, and for focusing all their investments on New York.

"We saw that we could get a much higher return on our market investments with Walmart.com," said Lore in Wednesday's blog post. "But in certain big cities where Walmart has few or no stores, Jet has become hyperfocused on urban customers. While this has made Jet less from a sales perspective, it has helped us create a smart portfolio approach where our businesses complement each other. "

When it comes to growing beyond New York, Lore added:" The focus has largely been in New York so far and we look at other cities where we can bring together Jet's expertise and scope and operation model of Walmart. More to come at it. "



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