Citing the success of its own website, Walmart is scuttling online retailer Jet
The company had once been a competitor of Amazon.
May 19, 2020 - 4:16pm
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Retail giant Walmart announced on Tuesday that it is shuttering the online retailer Jet, a company it acquired several years ago as what it said was a "critical" component of its aggressive marketing strategy.
Jet.com was launched in Hoboken, New Jersey in 2014 after raising nearly a billion dollars in capital in several initial venture rounds. The company has been known for its unique pricing system, in which shoppers are encouraged to purchase items located in the same distribution center, as well as agree to promotionals such as waiving the privilege of merchandise returns, in exchange for lower pricing.
Walmart acquired the brand in 2016. In a form 8-K filing released on Tuesday, the company said that the acquisition "was critical to accelerating our omni strategy." Yet in that filing Walmart announced it would be closing the company down.
"Due to continued strength of the Walmart.com brand, the company will discontinue Jet.com," the company said.
In June of last year, workers at Jet.com were transferred to Walmart's own branded website due to Jet's declining sales and web traffic.
Walmart's sales have reportedly surged amid the coronavirus, a result of the big box chain having large supplies of low-cost necessities like paper towels and toilet paper.
Walmart, the country's largest retailer, reported Tuesday that its sales from stores and digital operations increased 10% from a year ago, in a three-month period ending April 30, according to U.S. News & World Report.
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