Walmart closes Jet.com — its online marketplace

National and World

Retail giant Walmart quietly discontinued its e-commerce marketplace Jet.com

BENTONVILLE, Ark. (KNWA-KFTA) — Retail giant Walmart discontinued its e-commerce marketplace Jet.com.

The announcement was rolled into the company’s Tuesday, May 19, quarterly report.

Due to continued strength of the Walmart.com brand, the company will discontinue Jet.com.

The acquisition of Jet.com nearly four years ago was critical to accelerating our omni strategy.”

– Walmart

Walmart acquired the Hoboken, New Jersey company in August 2016 for about $3 billion in cash.

Walmart U.S. announced a 10% sales growth and e-commerce sales increase of 74%. The earnings report stated, “Total revenue was $134.6 billion, an increase of $10.7 billion, or 8.6%.” However, Walmart stated, “The company’s net sales and operating results were significantly affected by the outbreak of COVID-19.”

Walmart’s Chief Financial Officer Brett Biggs said product demand shows positive sales growth, but there are other incremental costs the company incurred. For example, such as paying higher wages and benefits, safety and sanitation brought on by COVID-19. As a result, Walmart is withdrawing financial guidance for fiscal year 2021.

The decision to withdraw guidance reflects significant uncertainty around several key external variables and their potential impact on our business and the global economy, including: the duration and intensity of the COVID-19 health crisis globally, the length and impact of stay-at-home orders, the scale and duration of economic stimulus, employment trends and consumer confidence.

Our business fundamentals are strong, and our financial position is excellent. Customers trust us to deliver on our brand promise, and I’m confident in our ability to perform well in most any environment. While the short-term environment will be challenging, we’re positioned well for long-term success in an increasingly omni world.”

– Brett Biggs

Doug McMillon, president and CEO, released the following Walmart Q1 statement.

More than ever, the news this quarter is our amazing associates. They are rising to the challenge to serve our customers and our communities. I’m proud of how they’re adapting
and performing. Our omnichannel strategy, enabling customers to shop in seamless, flexible ways, is built for serving the needs of customers during this crisis and in the future.”

– Doug McMillon

An omni world, omnichannel strategy is a retail integration strategy that allows consumers to shop seamlessly through a mobile device, online or in the store. For example, Walmart has grocery pickup services and there are customers who prefer to shop in stores.

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