Jet.com is doubling down on convenience, with plans to open a fulfillment center in New York City this fall. While the online grocer already caters to urban customers, its move into the city could give parent company Walmart a leg up into unconquered territory.
Walmart has made several e-commerce efforts, including Scan & Go apps and online order fulfillment centers of its own, according to Gartner L2’s Digital IQ Index: Grocery. However, the company has thus far been unsuccessful in entering NYC or surpassing Amazon. As an online native, Jet has several advantages over its parent company, including being able to show customers in real time how much they could save by buying in bulk. For example, product pages for Kellogg’s Frosted Flakes show that Jet offers incremental discounts when customers buy more than one box.
Along with Walmart, Jet is also featured as a retail partner on food platform Tasty’s app. Tasty touts quick and easy recipes, ideal for busy city-dwellers. With Jet’s NYC center in tow, the partnership has plenty of potential to succeed further.
Though the center will only handle Jet inventory for now, it could one day open up a future for Walmart products as well. Until then, it’s one small step closer to the Big Apple for Walmart, and one giant leap for Jet.