Walmart’s Jet.com To Offer Nike Products For Urban Consumers

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NEW YORK (Reuters) – Walmart’s Jet.com announced Thursday that it will sell Nike Inc products and offer more delivery options, starting with its first New York market, in a bid to refine its target for affluent urban consumers and compete better with e-commerce competitors like Amazon.com Inc.

Walmart Inc acquired Jet for $ 3.3 billion in August 2016, a deal that was widely seen as a turning point for its then struggling e-commerce business because it had access to both technology and talent. thanks to Jet founder Marc Lore and his team.

“We both had a keen interest in serving this affluent urban customer base,” said Jet Customer Director David Echegoyen. The relationship with Nike, which is slated to launch in October, “would give Jet customers a set of everything,” he added.

Nike launched a pilot to sell shoes and clothing on Amazon last year, in a dramatic turnaround after long shunning the world’s largest online retailer. The partnership was a signal that Amazon was serious about tackling counterfeit products on its site and was courting once-tired fashion brands. This summer, the CEO of Nike told analysts on a conference call that the partnership “is progressing well.”

Jet’s relationship with Nike is less about the Nike product and more about how consumers discover a sneaker or running shoe, Jet executives said.

Jet said he is still finalizing the Nike product line that will be offered on the site. Jet is separately wooing urban millennial customers through initiatives in another category: the grocery store. “We bring together a grocery shopping experience with a fashion experience with a home experience that customers can check out in one shopping cart,” said Simon Belsham, CEO of Jet.

Thanks to Parcel, the last mile delivery technology company acquired by Walmart in 2017, most New York City consumers will be able to arrange three-hour scheduled delivery windows for groceries – now including products. fresh – and other merchandise from local stores.

Jet said he plans to offer these delivery options nationwide, but will test them first in New York City.

Jet executives said the initiatives were not in response to Amazon Prime Now, the company’s two-hour delivery service that allows customers to purchase Whole Foods and other local stores in cities across the country. whole world.

Many analysts consider Amazon to be unmatched in managing the distribution and delivery of non-perishable goods, which means other players in e-commerce may be challenged to offer the same level of service.

Amazon has more than 150 fulfillment centers around the world, the company said.

Reporting by Melissa Fares in New York; Additional reporting by Jeffrey Dastin in San Francisco; Editing by Vanessa O’Connell and Leslie Adler


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