Three years after purchasing Jet for $ 3 billion, Walmart today announced that it is now more integrated with the Jet teams at Walmart. Jet will continue to function as a standalone brand, mainly in large cities.
Jet President Simon Belsham will support the transition through early August. After that, Jet will be led by Kiernan Shanahan, Walmart senior vice president of food, consumer goods and health and wellness and the management of Walmart Ecommerce's Everyday Living category. Jeff Saunders, Jets Operations and Technical Vice President, will lead Jet integration into the Everyday Living team.
In a blog post that announced the transition, Walmart Ecommerce president and CEO Marc Lore explained that the company decided to fold the rest of the Jet teams in Walmart because "Over most of the country we saw that we could get a much higher return on our market investments with Walmart.com, so we have called our marketing expenses there. 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, "he added.
After Walmart bought Jet in 201
Last year, Jet .com relaunched to focus on customers in big cities, such as New York, with a product range tailored to their shopping preferences and a three-hour grocery store to compete with Amazon Prime Now. Jet also introduced a concierge shopping service called JetBlack last year as a stand-alone e-commerce business aimed at busy parents living in cities that do not have much time to shop in brick and mortar stores or surf the web. Last week, JetBlack announced that customers spend an average of $ 1,500 per month on purchases, as well as a $ 50 monthly fee they pay for the service.
In his post, Lore wrote "Jet continues to be a very valuable brand to us, and it plays a particular role in helping Walmart reach urban customers. The focus has largely been on NY so far and we see on other cities where we can bring together Jet's expertise and the scale and operating model of Walmart. More to come by. "