Walmart’s online venture, Jet.com, will no longer offer fresh grocery delivery, putting an end to the program that started only a year ago in New York. Essentially, the retailer will shutter a fulfillment center it had been using to facilitate these deliveries for customers in the Bronx burrough of New York. In the process, this closing will eliminate between 200 and 300 jobs. Alternately, Walmart said it will focus the Jet.com platform at selling dry goods as well as other general merchandise.
Apparently, fresh groceries has been Jet.com’s smallest sector. According to a spokesperson for Walmart, “We learned a lot by testing Jet fresh grocery delivery in New York City, and we recognized the important role our stores play in providing an efficient way to offer groceries to customers through pickup and delivery.”
Earlier this week, Walmart showed its earnings were quite strong in its grocery sector, and the future looks to be just as promising. Of course, Walmart, on its own, does not deliver fresh food to Manhattan; and that, analysts say, has only been complicated by the fact that their existing grocery business is so massive this grocery delivery concept may not provide quite as much convenience as had been anticipated.
The spokesperson goes on to say, “We will focus our grocery pickup and delivery in markets where we have this incredible opportunity. Jet will continue to offer millions of dry grocery and general merchandise items to customers in major metros like New York City. And we’ll continue to test bold concepts that can offer convenience to customers.”
Walmart purchased the e-commerce site Jet.com in 2016 for $3 billion in a move they had hoped would help retail giant compete with the likes of online behemoth Amazon. As such, roughly one year ago Walmart started to offer grocery delivery through the Jet.com platform to customers in New York City. Furthermore, they had planned to expand this program to other East Coast cities—like Boston and Philadelphia and Washington DC—but, of course, that is no longer an option.