Walmart will discontinue Jet.com, the Hoboken-based e-commerce company it bought for $3.3 billion four years ago, Chief Executive Officer Doug McMillon announced Tuesday.
“While the brand name may still be used in the future, our resources, people and financials have been dominated by the Walmart brand because it has so much traction. We’re seeing the Walmart brand resonate regardless of income, geography or age,” McMillon said.
The Jet acquisition was “critical to jumpstarting the progress” Walmart has made in the last few years, he said.
“Not only have we picked up traction with pickup and delivery, but our walmart.com non-food eCommerce growth accelerated after the arrival of Marc and the Jet team. He leaned into the Walmart brand quickly,” McMillon said.
Marc Lore, Jet.com’s founder, leads Walmart’s U.S. e-commerce business.
This decision won’t have significant financial decisions, he said, and most of Jet’s employees have been assigned to other roles within the Walmart brand.