Walmart announced that they have decided to fold Jet.com operations into Walmart. This result was inevitable once Walmart acquired Jet.com in September 2016, and reflects their desire to become a more seamless omnichannel provider with the ability to serve customers with both brick-and-mortar and e-commerce operations.
Walmart is currently the only omnichannel provider in the United States with the potential to directly compete head-to-head with Amazon. Walmart has the advantage of being the largest retailer in the world, with a fleet of more than 5,000 retail outlets to provide convenient shopping or BOPIS (buy online-pick-up in store) opportunities for U.S. consumers. Walmart is also very efficient in logistics, a key consideration for any omnichannel operation. However, merging Jet.com into Walmart’s existing on-line operations is much more difficult than building an e-commerce business from scratch, as Amazon has done. It will be interesting to see how this plays out in the coming years.