NewsSclafani San Marzano DOP Whole Peeled Plum Tomatoes Can on white background

Walmart’s fiscal year 2018 ending January 31st had 8 % higher revenues than the year before but expenses were so much higher that profit was down 28%.  I believe its Jet, Walmart’s online acquisition, which caused the losses and my wife’s one and only purchase shows how.  She was looking for Sabra humus with jalapeno peppers which our local grocer stopped carrying and Jet offered it a $7.04 per pack delivered.  She ordered 2 packs for a total $14.08 delivered by Fedex fromTexas to Connecticut next day in a refrigerated pack. The delivery and packaging was worth at least $30. It reminded me of the old “w’ll make it up on volume” path to ruin because there is no way to reduce package and transport costs to something like what Walmart offers in store. Online makes it possible for each individual store to carry exactly what its local customers want through the purchase information it gives. It appears Jet is a separate silo at Walmart intent on selling at everyday low prices delivered rather than as a data source for correctly stocking its stores. Its not clear Amazon knows what to do with Whole Foods yet but my bet is that they will figure it out. Not sure Walmart will.

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