Walmart's Jet.com Delivery Service Launches Grocery Line To Compete With Amazon
Walmart's delivery service Jet.com is launching its own brand of household and grocery products. The New York Post reports that more than 60 food and home items will be introduced in the coming months.
Recently, competition has spiked in the world of supermarket expansion. In August, Amazon acquired Whole Foods and is looking to soon deliver Shake Shack and Chipotle. Target dropped its prices to compete with Amazon and Kroger is on track to open its very first restaurant later this fall.
According to the company's website, Walmart bought Jet.com last year for $3 million dollars to increase its digital portfolio. Its new merchandise "will be better quality than many of the national name brands," retail consultant Burt Flickinger told the New York Post. These products will launch exclusively on Jet.com for the first year and will later sell on Walmart.com.
Although big brands like Kraft, Campbell's, and Kellogg's compete with private labels, Flickinger says they're "relieved about the Jet.com division becoming a big private label seller. They see Jet.com as the best opportunity to slow Amazon's march towards making unreasonable demands in its procurement."
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