logo
Plus   Neg
Share
Email

Jet.com: Wal-Mart Trimming Corporate Fat

walmart.jet-jun13-lt.jpg

Retail giant Walmart said it is eliminating the role of Jet.com president as it integrates the big-box retailer fully into its e-commerce business. Jet.com had become a unit of Walmart in 2016.

Simon Belsham, the current Jet.com president, will remain with the company until early August supporting the transition.

In a blog post, Walmart eCommerce U.S. CEO Marc Lore, who founded Jet, said the retailer is merging the rest of Jet teams within the company. These include Retail, Marketing, Technology, Analytics, Product and several others.

According to CNBC, no Jet employees will be laid off, and its headquarters will remain in Hoboken, New Jersey.

The full integration comes two years after Walmart acquired Jet for $3.3 billion to help in its efforts to compete with e-commerce giant Amazon. Walmart had registered 40 percent eCommerce growth last year.

Jet was founded in 2014 by Lore, who then became head of Walmart's ecommerce business.

After the acquisition, Walmart repositioned the Jet site last year, with focus on specific large cities where Walmart has few or no stores, including New York. Jet added iconic local brands in New York and brought in products from brands like Apple and Nike which were not available on Walmart.com.

Some of Jet teams have already been merged with Walmart, resulting in a combined supply chain team. This has led to two-day free shipping, and more recently, free NextDay Delivery, all without a membership fee.

Further, the combined retail team has added new brands, including private brands with Sophia Vergara, Ellen DeGeneres, and Drew Barrymore, among others.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT