BENTONVILLE, Ark. – Walmart is discontinuing Jet.com due to the continued strength of the Walmart.com brand, according to the company’s first-quarter earnings report, which showed a 74% growth in e-commerce.
In the quarterly conference call, Walmart CEO Doug McMillon said that the Jet brand name may still be used in the future, but he added that recently the Walmart brand has grown in the amount of traction it has with consumers. He also said that the acquisition of Jet.com nearly four years ago was critical to accelerating Walmart’s omnichannel strategy at that time.
The decision to end Jet.com also came as the company discussed ways to cut costs and find efficiencies as it looks to manage spending during the pandemic. The company had previously eliminated the role of Jet President Simon Belsham in August 2019.
“With the teams creating synergy and Jet becoming even more focused, we don’t have the same need for a dedicated leader,” Marc Lore, Walmart e-commerce U.S. president and CEO said at the time.
After acquiring Jet, Walmart moved to two-day free shipping and free next-day delivery without a membership fee. Lore said the smart cart technology built by the team at Jet played a big role in making that possible and also led to a 40% growth in e-commerce back in 2018.