Forward-looking: Walmart as part of its earnings report on Tuesday quietly announced that it will be discontinuing e-commerce subsidiary Jet.com. In announcing the news, Walmart said the continued strength of the Walmart.com brand led to the decision to wind down Jet.com.
Walmart, if you recall, purchased the online-only shopping site as part of a $3.3 billion cash and stock deal back in 2016. Oddly enough, the e-commerce acquisition never felt like much of a priority for the big box retailer although the company did say it was critical in helping to accelerate its omni strategy.
Late last year, Walmart shut down Jet's fresh food delivery division, resulting in the loss of up to 300 jobs, in what was correctly seen by some as a sign of things to come.
Indeed, Walmart's e-commerce division was a strong performer over the past quarter as many turned to online shopping in the wake of Covid-19 stay-at-home orders. The Bentonville, Arkansas-based company said e-commerce sales increased 74 percent during the first quarter.
Total revenue, meanwhile, checked in at $134.6 billion, up 8.6 percent compared to the same period a year ago. That's impressive considering many stores reduced operating hours to boost sanitation efforts and restock shelves. Walmart credited strong sales of food, consumables, health & wellness items and some general merchandise categories for its solid performance.
Masthead credit: NYCStock