Walmart is calling it quits on Jet.com, an e-commerce site intended to unseat rival Amazon as the top online shopping spot…
American multinational retail corporation Walmart, with an $523 billion revenue, is about to abandon its Amazon competitor, Jet.com. This, after the company acquired the site just three years ago for $3 billion. The brick-and-mortar retailer says that it’s doing so because of the “continued strength of the Walmart.com brand.”
Walmart Shuttering Jet.com After Spending $3 Billion in 2016
Walmart’s killing off of Jet.com comes as a surprise. The company said when it bought the entity it would be “critical to accelerating our omni strategy.” However, the real numbers reveal a more stark reality: last year, Walmart bled approximately $2 billion from its online e-commerce operations, according to a report from The Wall Street Journal.
Ostensibly, Walmart will refocus its efforts on its physical locations where the company holds a strong advantage over Amazon. Even though Walmart’s e-commerce business is up by 74 percent over Q1 2019, due to increased grocery pickup and delivery services, Jet.com never caught on with consumers.