Walmart plans groceries designed for Millennials
Walmart’s Jet.com will introduce a higher-end grocery line for Millennials, just over a year after Walmart spent more than $3 billion for the fast-growing online retailer amid more intense competition from Amazon.
Amazon.com closed on its acquisition of Whole Foods last month, as Walmart, Target and other supermarkets fight to win a bigger slice of the grocery market. And pushing private brands — when they work — offers high profit margins since stores have control of sourcing. Whole Foods has done well with its private label 365 by Whole Foods Market, which is being expanded to Amazon.
Jet said Friday that the new brand, called Uniquely J, will focus on younger customers in urban areas, offering them select coffee, olive oil, paper towels and other products.
Jet, which sells products including clothing, gadgets and home furnishings, will also be carrying some of the niche brands like ModCloth and Bonobos that Walmart has acquired in recent months. ModCloth products are starting to be carried on Jet, while Bonobos offerings will be available some time next year, according to Walmart officials.
The moves are part of an overall strategy by Marc Lore — who founded Jet.com in 2015 and is now head of Walmart’s U.S. e-commerce — to set the startup apart from the Walmart.com website and make it more upscale. Jet is built on a pricing algorithm that determines which sellers are the most efficient in value and shipping and adjusts prices based on what items are in the checkout cart, as well as how far the desired products are from the shopper’s home. So as shoppers throw items in their cart, they’re encouraged to continue shopping so they can build a more efficient cart buy choosing items labeled “smart cart” for more savings.
Amazon cut prices almost immediately on several items at Whole Foods after it closed on the deal. Walmart has done the same over the past month.