eCommerce

Jet.Com Phasing Out Costco Products

Jet Celebrates First Birthday

Jet.com will be phasing out retail products under the Kirkland Signature brand, which is owned by Costco.

According to Bloomberg Technology, the decision comes after Walmart’s — one of Costco’s biggest competitors — acquisition of Jet.com.

Walmart’s Sam’s Club chain has been working to boost sales by focusing on its own main store brand, Member’s Mark, consolidating about 20 different labels under that one private label and adding 300 new products. Jet now carries hundreds of Member’s Mark products, part of a broader effort to integrate it into Walmart.

While it made sense for Jet.com to initially carry Kirkland, “it’s definitely odd that it’s on there now,” said Laura Kennedy, an analyst at research firm Kantar Retail. “Jet is still moving through full integration with Walmart, and it’s something I’m sure Walmart was aware of when it acquired Jet.”

The Kirkland Signature brand made its debut in 1992 and spans everything from shopping basics like bottled water and paper towels to vodka and maternity clothes. Sales of some Kirkland items exceed $1 billion, and Jet accounted for 5.5 percent of Kirkland’s eCommerce sales in the first half of 2016, behind Amazon and Costco’s website.

In a phone interview, Costco Chief Financial Officer Richard Galanti said he wasn’t surprised the Kirkland products were being pulled, “given who acquired them.”

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