Home / Business / Jet.com President Simon Belsham to go down as Walmart eliminates the role

Jet.com President Simon Belsham to go down as Walmart eliminates the role



More than two years after Walmart bought Jet.com, the merchant takes steps to integrate and fold the e-commerce platform more fully.

As part of the planned changes, Simon Belsham's role as Jet President will be eliminated, and Jet team leaders will now report to Kieran Shanahan, who has overseen Walmart's food, supplies and health and wellness divisions online.

Walmart, who announced the changes to a blog post Wednesday night, said it will merge the rest of Jet teams – including retail, marketing, technology, analysis, product, and more – into Walmart.

"We do not have the same need for a dedicated leader," says Jet Lite, Marc Lore, founder of Jet.com, now acting as head of Walmart's e-commerce business in the United States

Belsham will remain with the company until early August to help with the transition, Lore said.

A Walmart spokesman told CNBC that there are no layoffs due to these steps, and Jet will be headquartered in Hoboken, New Jersey.

"This natural advancement in integrating an acquisition allows us to fully utilize Walmart's assets to Jet and claim Jets talent for Walmart," says Lore.

Since Walmart acquired Jet for about $ 3 billion by the end of 201

6, it has done some minor integration, like combining its supply chains to fall under Jet.com founder Nathan Faust. Faust and Lore both came from Quidsi, another start with Lore co-founder who was sold to Amazon in 2011 for $ 550 million. (Amazon later shuts down Quidsi.)

Lore said the changes in the supply chain have helped Walmart increase overall sales of e-commerce at a fast cut and ultimately move on to offering free delivery the next day.

Jet has already gone through some management shake before. It lost its former president, Liza Landsman, last year. She had been named for that position after Lore became the head of e-commerce for Walmart, but later went to work as a venture capitalist. That was when Belsham entered.

While admittedly, Walmart has called back its marketing efforts for Jet, which has focused on targeting Millennium Customers to focus more on growing Walmart.com. The company has previously been criticized by analysts not to increase Jet sales as soon as some had hoped and to focus all their investments in New York.

"We saw that we could get a much higher return on our market investments with Walmart.com," said Lore in Wednesday's blog post. "But in specific big cities where Walmart has few or no stores, Jet has become hyper-focused on urban customers. While this has made Jet less from a sales perspective, it has helped us create a smart portfolio strategy where our businesses complement each other." 19659002] Last year, Walmart redesigned Jet.com by adding more brands from brands like Nike, faster delivery and a lot of other upgrades to compete more effectively against Amazon.

Jet could be looking to grow again soon, according to Lore. "Focus has largely been in New York so far, and we are looking at other cities where we can collect Jet's expertise and scale and operating model of Walmart," he said. "More to get on with it."

Walmart also announced that David Echegoyen, current vice president and chief consultant at Jet, will move to Walmart's marketing department as vice president of grocery, pickup and delivery and marketing services in the US and online, reporting to Barbara Messing.

Walmart shares amount to approximately 16.8% so far this year.


Source link