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Three years after the $ 3 billion acquisition of Jet, Walmart announced today the more complete integration of its teams into Walmart. Jet will continue to operate as a stand-alone brand, mainly in large cities.
Jet president, Simon Belsham, will support the transition until early August. After that, Jet will be run by Kiernan Shanahan, Walmart Executive Vice President of Food, Consumer Products, Health and Wellness and Head of Daily Life at Walmart Ecommerce. Jeff Saunders, Jet's Vice President of Operations and Technical Lead, will lead Jet's integration into the Everyday Life Team.
In a blog post announcing the transition, Walmart Ecommerce's president and CEO, Marc Lore, explained that the company had decided to incorporate the rest of Jet's teams at Walmart because "in most regions of the country, we were able to get a much higher return on our marketing investments. With Walmart.com, we have increased our marketing spend there. However, in some big cities where Walmart has few or no stores, Jet has become hyper focused on these urban customers. "
"Although it made Jet smaller from a sales point of view, it helped us create a smart portfolio approach in which our businesses complement each other," he added.
After Walmart's acquisition of Jet in 2016, some of its teams, including the supply chain, were merged. The combination of distribution centers and inventory replication helped Walmart strengthen its delivery logistics, allowing free delivery for two days and free delivery the next day, with no membership fees, making it more competitive with Amazon, who bills his premium program.
Jet.com relaunched last year to focus on big city customers, like New York, with an assortment of products tailored to their shopping preferences and a three-hour shopping delivery to compete with Amazon Prime Now. Jet also launched last year a shopping service called JetBlack, an autonomous e-commerce business aimed at busy parents living in cities that do not have much time to shop in traditional stores or browse online. Last week, JetBlack announced that customers spend an average of $ 1,500 a month on purchases, in addition to the $ 50 monthly fee paid for the service.
In his post, Lore wrote, "Jet continues to be a very valuable brand for us and plays a specific role in helping Walmart reach its urban customers. Much of the focus has been on NY so far, and we are also looking at other cities where we could bring together Jet's expertise, as well as the size and operational model of Walmart. More to come on this subject. "
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