Retail

Walmart Overhauls Jet.com, President Out In August

As Walmart works to integrate Jet.com into its business, the retailer is eliminating Simon Belsham’s role as Jet president. As a result, Jet team leaders will now report to Kieran Shanahan, who’s been overseeing Walmart’s food, consumables and health-and-wellness divisions online.

“Bringing together talent from Jet and Walmart into joint teams has created more opportunity for our business and our people,” said Marc Lore, co-founder of Jet.com who now serves as president and CEO of Walmart eCommerce U.S., in a blog post. “We’re now merging the rest of our Jet teams, including retail, marketing, technology, analytics, product and several others within Walmart. With the teams creating synergy, and Jet becoming even more focused, we don’t have the same need for a dedicated leader.”

He added that Belsham will remain with the company until early August to help with the transition.

A Walmart spokesman told CNBC that there are no layoffs planned. In addition, Jet’s headquarters will remain in Hoboken, NJ.

“This natural progression of integrating an acquisition allows us to fully leverage Walmart’s assets for Jet, and leverage Jet’s talent for Walmart,” Lore stated.

Walmart has also decreased its marketing efforts for Jet, and is instead focusing on the growth of Walmart.com.

“Across most of the country, we saw we could get a much higher return on our marketing investments with Walmart.com, so we’ve dialed up our marketing spend there,” Lore explained. “However, in specific large cities where Walmart has few or no stores, Jet has become hyper-focused on those urban customers. It added iconic local brands in New York, and brought in products from brands like Apple and Nike, that you haven’t seen on Walmart.com. While this has made Jet smaller from a sales perspective, it has helped us create a smart portfolio approach where our businesses complement each other.”

In addition, the retailer announced that David Echegoyen, vice president and chief customer officer at Jet, will be moving to Walmart’s marketing division as vice president of grocery, pickup, and delivery & services marketing in the U.S. and online. He will report to Barbara Messing, senior vice president and chief marketing officer.

——————————

PYMNTS LIVE ROUNDTABLE: TUESDAY, JULY 14, 2020 AT 12:00 PM (ET)

Digital transformation has been forcefully accelerated, but how does that agility translate into the fight against COVID-era attacks and sophisticated identity threats? As millions embrace online everything, preserving digital trust now falls mostly on banks and FIs. Now, advances in identity data and using different weights on the payment mix afford new opportunities to arm organizations and their customers against cyberthreats. From the latest in machine learning for fraud and risk, to corporate treasury teams working in new ways with new datasets, learn from experts how digital identity, together with advances like real-time payments, combine to engender trust and enrich relationships.

TRENDING RIGHT NOW