Following Walmart’s acquisition of e-commerce platform Jet.com in August 2016, Jet.com’s president Liza Landsman has outlined how the company plans to adapt to a rapidly evolving retail landscape and compete against rivals such as Amazon.com
At a December conference organized by corporate data miner CB Insights, Landsman told Bloomberg that Walmart and Jet.com complement each other, and that a wider set of capabilities will be required to survive and thrive in the retail landscape of the future.
“I think the day of the pure play is dead,” Landsman said. She believes that while the dominant perceived trend in retail is the decline in brick-and-mortar presence, the online-only business model is also fading. Each model is being transformed into a combination of online and offline. And for Landman the definition of “offline” has expanded beyond traditional stores to include pop-ups or automated kiosks.
Landsman said Jet.com’s integration into Walmart’s supply chain and logistics operations has “dramatically improved” its unit economics. And the company has refocused its marketing on existing customers and targeted audiences, rather than nationwide advertising.
How will Jet.com take on Amazon? Landsman says the strategy will include going after premium brands and grocery delivery. Walmart’s dense store network will give it a definite edge in last-mile delivery.
Source: CBI Insights