Jet.com is losing altitude. That’s according to the recent report by Bloomberg that states the online retailer seen a sharp decline in traffic. Traffic for Jet.com declined about 60 percent in March compared with a year earlier.
Walmart, Jet’s owner, has increased its marketing spend for their primary site Walmart.com while scaling back on promotion for Jet. This comes as Walmart has also put its efforts into revamping their website. They’ve added more upscale goods and new apparel brands, and expanded their home delivery options. They’ve even entered into a partnership with upscale department store chain Lord and Taylor.
Walmart seems to be adopting the features of Jet to lure away Jet’s prime customer – the savvy millennial shopper – who come to expect features like Jets “smart cart” shopping feature — which provides discounts for ordering more items. This mechanism has already been adopted by Walmart.com.
Walmart.com’s traffic, meanwhile, was up 5 percent over the same period, according to data tracker SimilarWeb.
“So long as Walmart’s numbers are strong it doesn’t matter what happens to Jet,” said Sucharita Kodali, an analyst at Forrester Research. “This makes it easy to sunset Jet and focus on Walmart. I’m not sure, honestly, why Jet is even still around.”
But Jet is coming in for a landing just yet. They’ve brought in Simon Belsham, as their new president who joined the company last month. Founder Marc Lore is now running Walmart’s U.S. online unit. In an email to Bloomberg, Jet’s spokeswoman Meredith Klein said that website traffic is an “imperfect way of looking at it” and “not that meaningful” given changes the company is making to stand out from competitors. The site is investing more in key urban markets like New York and San Francisco, and its share of new customers coming from those areas has increased compared with last year, according to the company.