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Walmart's Jet.com to Launch Own Grocery Line

Walmart's Jet.com to Launch Own Grocery Line


BENTONVILLE, AR
Friday, September 29th, 2017

Walmart continues to make moves in grocery, bolstering its online portfolio through cyber subsidiary Jet.com.

According to the New York Post, Jet.com, the online brand Walmart acquired last year for $3 billion, is reportedly prepping a new grocery line to launch with more than 60 food and household items under its first private label.

Jet.com

This is Walmart’s second food pilot news this week. Terra’s Kitchen CEO Michael McDevitt revealed that the retailer is currently exploring ways to break into the meal kit segment as soon as December, leaping into the increasingly-competitive and potentially-lucrative market alongside Albertsons and Amazon.

Burt Flickinger, Managing Director, Strategic Resource GroupRetail consultant Burt Flickinger, who the Post noted is familiar with Jet.com’s plans, said its private label merchandise “will be better quality than many of the national name brands.”

The pilot will reportedly be tested through Jet.com for its first year—after which time, products may be sold on Walmart.com. A source familiar with the plan said the items could then move into Walmart’s brick and mortar stores.

Steve Johnson, Foodservice Solutions“Walmart is where consumers go to buy branded products for less, but everyone is getting into private label now and Walmart has to elevate its offerings,” Steve Johnson, of Foodservice Solutions, told the source.

“The branded vendors are privately telling us that they are relieved about the Jet.com division becoming a big private label seller,” said Flickinger. “They see Jet.com as the best opportunity to slow Amazon’s march towards making unreasonable demands in its procurement.”

Jet.com

How impactful will the new private label be for Walmart, and does its introduction signify a sea change for a company typically associated with branded goods? Deli Market News will continue to report.

WalmartJet.com
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