Jet.com is stepping out of Walmart’s shadow
Walmart spent $3.3 billion to acquire Jet.com a little more than a year ago. Now, the e-tailer is making moves that its management believes will distinguish it from its parent company and make it a force in fashion, grocery and beyond.
According to a Wall Street Journal report, Jet will begin adding clothes from ModCloth to its site in the months ahead and will do the same with Bonobos’ line of men’s apparel next year. The moves are part of Jet’s plan to offer more upscale goods than typically found on Walmart.com.
Jet is also introducing a new premium grocery private label called Uniquely J intended to appeal to the “metro millennial consumer,” according to a Mashable report. The line, which will emphasize product quality, will become available on the site over the next two months and will include roughly 60 food and household items. Jet plans to extend the line to baby, beauty and pet products in the future.
Earlier this year, Jet opened a temporary store selling items such as organic blueberries and carrots inside STORY, a 2,000 square-foot retail concept founded by Rachel Shechtman, a former brand consultant for Kraft and TOMS shoes.
Jet also plans to get in on the “bed in a box” business, according to the Journal. In May, Walmart rival Target made a $75 million investment to gain a minority stake in Casper, the leader in the category. The deal allows customers to buy Casper beds and accessories from Target.
Heading into the holiday season, Jet announced it was offering five percent cash on orders placed between Sept. 18 and Oct. 29. Customers will earn up to $50 in JetCash that they can use for purchases during the holiday season beginning on Nov. 13. One dollar in JetCash is the equivalent to $1 spent on the site.
“This effort rewards our loyal customers with some cash towards their holiday shopping and also attracts new shoppers to check out Jet.com, letting them decide how and what to use their credit towards,” said Liza Landsman, Jet’s president, in a statement.
- Walmart’s Jet.com is launching its own line of groceries to compete with Amazon – Mashable
- Wal-Mart Tries to Take Jet.com Upscale – The Wall Street Journal
- Why did Walmart buy Jet.com? – RetailWire
- What’s the ‘STORY’ with Jet.com’s grocery store? – RetailWire
- Why is Target investing in a mattress direct seller? – RetailWire
DISCUSSION QUESTIONS: Do you think that differentiating Jet.com from Walmart.com will be key to Walmart’s digital strategy going forward? Which of Jet.com’s planned merchandising initiatives — adding ModCloth and Bonobos clothing, rolling out Uniquely J grocery private label or launching a “bed in a box” — will have the biggest positive affect on the site’s top and bottom lines?