Walmart Inc.’s Jet subsidiary is ending its fresh-food delivery business just a year after introducing the service in New York City, another sign that the urban-focused site is scaling back.
The retailer will close a warehouse in the Bronx it was using to prepare orders and also let some drivers go, resulting in the loss of between 200 and 300 jobs, according to a person familiar with the decision. Jet — which will continue to sell dry groceries like cereal and other general merchandise — will inform customers of the news Friday and fulfill any existing orders already placed.
Since its launch last fall, Jet’s fresh-food service has struggled, according to three people familiar with the business. The company has resorted to raising prices to offset the hefty costs of fulfilling orders in the nation’s biggest city. Key executives left, and in recent months items like avocados and strawberries have been out of stock.
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