Walmart to dramatically scale back Jet.com amid falling sales
Walmart is set to dramatically overhaul operations at Jet.com, the ecommerce start-up it acquired in 2016 in a bid to rival Amazon.
The US retail giant has announced plans to integrate Jet.com’s operations, including its retail, technology, marketing and product teams within its own business.
Jet.com, which was acquired by Walmart in 2016 for $3.3 billion (£2.6 billion), is an ecommerce marketplace similar to Amazon, placing a focus on reducing prices instead of offering fast and comprehensive delivery times.
However Jet.com, which was originally expected to help boost Walmart’s ecommerce reach with millennials and city dwellers, has failed to provide the growth expected.
According to sources speaking to Reuters, Walmart will now seek to reduce the importance of Jet.com in its operations, while its president Simon Belsham will leave in August.
Walmart has been scaling back orders to sell on Jet.com since March, the sources added, as it attempts transfer sales to its own-branded ecommerce platform.
Jet.com has reportedly been unable to keep up with internal revenue targets, and saw annual revenues fall from $1 billion when it was acquired in 2016, to $689 million.