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story.lead_photo.caption This undated file photo shows Wal-Mart's sign in front of its Bentonville headquarters.

Walmart Inc. subsidiary has stopped offering fresh-food delivery in New York City, ending what the retailer says was a yearlong test.

Customers bought more dry groceries and general merchandise from the e-commerce site than fresh groceries, a Walmart spokesman said Friday in an emailed statement.

Jet, based in Hoboken, N.J., fulfilled its fresh grocery orders through a warehouse in the Bronx, a New York City borough. That facility will close.

"We've learned a lot from this experience," Walmart said in the statement. "We recognized the important role our stores play in providing an efficient way to offer groceries to customers through pickup and delivery. And we'll continue to test bold concepts that can offer convenience to customers."

Walmart acquired Jet in 2016 for $3.3 billion in an effort to beef up its e-commerce business. The deal also gave the Bentonville-based retailer a channel to reach the urban millennials who are Jet's core customers.

In June, Walmart integrated all employees into its main operations. The unit is headed by Kieran Shanahan, who also oversees the food, consumables and health and wellness categories for Walmart e-commerce.

Business on 11/23/2019

Print Headline: ends NYC fresh-food deliveries

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