Walmart’s Jet.com Unveils Private Label Aimed at Millennials

HOBOKEN, N.J. — Ecommerce retailer Jet.com, a subsidiary of Wal-Mart Stores Inc., has revealed plans to launch a private label line geared toward the "metro millennial consumer."

Over the next two months, Hoboken-based Jet will begin selling roughly 60 food and household items, with baby, beauty and pet products joining the lineup afterward. All products will be delivered in shipping-friendly packaging vs. packaging designed for store shelves, The Wall Street Journal reported.

The new initiative is part of a "broader effort" by Marc Lore, president and CEO of Walmart U.S. ecommerce to offer specialty goods via Jet that can’t be purchased elsewhere, including at Walmart, the news outlet reported. It is aimed to differentiate Jet — which is known as a discount retailer — from its parent brand.

Although Jet.com currently offers several Walmart private brands like Great Value, Sam's Choice and Equate, it hasn't performed well with the targeted millennial market to which Jet appeals.

A name for the private label brand has not yet been revealed.

"Walmart is clearly letting Jet 'run' with a separate strategy that some think will cannibalize Walmart.com sales," said Matt Sargent, senior vice president of retail at Minneapolis-based research consultancy Magid. "Walmart is making this choice due to the fact that Jet.com users represent a demographic — younger, more affluent, more online-centric — that typically has opted for the likes of Target, Trader Joe's, Costco or Whole Foods vs. Walmart."

Jet isn't the only brand Walmart has refreshed or expanded to increase its appeal to a specific consumer base: Walmart recently relaunched its nearly 20-year-old Parent’s Choice brand, which offers diapers, wipes, baby food and more. The brand will now grow to comprise more than 275 essentials.

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