Jet.com to phase out Costco products after Walmart deal
The move comes about nine months after Walmart acquired the internet retailer for $3.3 billion.
Walmart is phasing out Costco products from its internet retailer Jet.com.
If you are Jet.com customer partial to Kirkland Signature brand products, you'll soon have to look elsewhere for them.
Jet.com, which was purchased last year by Walmart, plans to phase out the Costco-owned brands, Bloomberg reported Monday. Some Kirkland products will still be available on the internet retailer but only through third-party sellers, a spokeswoman told Bloomberg.
The move is of little surprise, considering that Walmart and Costco are competitors in the warehouse club retail format. Indeed, Jet.com's Marc Lore took the inspiration for his site from Costco, which popularized the members-only warehouse approach.
The move comes about nine months after Walmart completed its $3.3 billion acquisition of e-commerce retailer. Backed by hundreds of millions of dollars in funding, Jet.com launched its site nearly two years ago, offering consumer products ranging from laptops to shampoo to furniture.
Now under Lore's leadership, Walmart's e-commerce arm saw a 69 percent increase in merchandise volume last quarter, thanks to an expansion of third-party products and two-day free shipping.
Neither Jet nor Walmart immediately responded to requests for comment.