Walmart is absorbing Jet into its own e-commerce operations—a move that will result in Jet.com’s President Simon Belsham exiting the company in August of 2019. As of now, the retailer plans to retain the entirety of Jet's staff, with no layoffs slated, a source disclosed to Yahoo! Finance. Walmart first acquired Jet two years ago for $3.3 billion.
“This natural progression of integrating an acquisition allows us to fully leverage Walmart’s assets for Jet and leverage Jet’s talent for Walmart,” Marc Lore, President and CEO of Walmart E-Commerce U.S., wrote in a blog post. “The focus has largely been on N.Y. so far, and we’re looking at other cities where we might bring together Jet’s expertise and the scale and operating model of Walmart…We’re proud of the work our associates have done. Our teams are continuing to innovate, and we’ll be bringing more incredible experiences to customers and associates.”
Lore also bid adieu to Belsham, noting how critical the former President was in repositioning Jet to reach urban customers and just what his leadership, knowledge, and passion brought to the table.
"I can’t thank him enough for all he has done and appreciate his leadership and contributions,” Lore said.
In Belsham's place, Walmart’s own Kieran Shanahan, the current SVP E-Commerce, will manage Jet, in addition to overseeing the Food, Consumables, and Health and Wellness Categories for Walmart E-Commerce. Shanahan first joined the Walmart team through Asda, before transitioning to the Walmart E-Commerce team in 2014. He has helped the retailer build out its U.S. online grocery service, and in his new role, Walmart expects him to be integral in positioning Jet strategically within its portfolio.
“Bringing together talent from Jet and Walmart into joint teams has created more opportunity for our business and our people. We’re now merging the rest of our Jet teams, including Retail, Marketing, Technology, Analytics, Product, and several others within Walmart,” Lore added.
How will this integration play out on a national and international scale? Deli Market News will continue to follow along with all grocery developments.