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        <title><![CDATA[Walmart shutting down Jet.com after buying it four years ago for $3.3B]]></title>
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        <link>https://usagag.com/2020/05/19/walmart-shutting-down-jet-com-after-buying-it-four-years-ago-for-3-3b/</link>
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            <media:title type="html">Walmart shutting down Jet.com after buying it four years ago for $3.3B</media:title>
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        <content:encoded><![CDATA[<p>Walmart said it&#8217;s shutting down Jet.com, just four years after it shelled out $3.3 billion to buy the online grocery startup in a bid to compete with Amazon.</p><p>The world&#8217;s biggest retailer scooped up Jet.com &#8212; founded in Hoboken, New Jersey, by e-commerce pioneer Marc Lore &#8212; in 2016 in a bid to beef up its e-commerce operations, especially in bigger metro areas including New York.</p><p>But despite its purple logo and quirky ads aimed at millennials, Jet.com had been heading southward for more than a year when its employees were transferred to work on the Walmart.com site in June and president Simon Belsham stepped down amid declining sales.</p><p>Nevertheless, Lore is now chief executive of Walmart&#8217;s e-commerce business in the US, which logged a 74-percent sales gain in the most recent quarter, the company said on Tuesday.</p><p>“Due to continued strength of the Walmart.com brand, the company will discontinue Jet.com,” Walmart said in its earnings statement, adding that Jet.com had been “critical to accelerating our omni strategy.”</p><p>The Jet.com site is still operational and Walmart did not provide a timeline for when it expects to discontinue it.</p><p>“Walmart ending the Jet.com experiment isn’t a surprise,” said retail consultant and former Amazon executive Brittain Ladd. “I’ve always believed that Walmart acquired Jet.com to leverage Marc Lore and his team to help accelerate the adoption of e-commerce at Walmart.</p><p>Ladd added that &#8220;Walmart has improved their e-commerce capabilities, but Amazon dominates Walmart in e-commerce and will continue to do so.”</p>]]></content:encoded>
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