JetMart announces Jenny Fleiss's replacement as leader of Jetblack

In a bid to boost its e-commerce business and better compete with Amazon, Walmart has made significant changes to its operations, including the potential divestment of its text-based concierge shopping service, Jetblack.

According to reports by Vox's Recode, the acquisitions were paired with Jet to enhance the e-commerce site's offering. However, the retail giant recently faced a $1 billion loss in its e-commerce business, leading to a reevaluation of its strategies.

Nate Faust, a senior vice president of supply chain and logistics with Walmart's e-commerce unit and co-founder of the Jet e-commerce site, is taking over as JetBlack CEO. This management change could be preparation for a potential spin-off of Jetblack, as suggested by Bloomberg.

Jetblack, which officially launched last year, offers curated recommendations, courier delivery pickup for returns, free gift-wrapping, and other services. The service's clientele represent a departure from Walmart's core business, as Walmart has a scant physical presence in the dense urban areas that Jetblack was designed for.

However, the service has been struggling to build a large audience beyond doorman buildings in New York City, and it is reportedly losing around $10,000 to $15,000 on each of its members. As a result of the pulled back marketing spend, Jet has lost around 93% of its traffic since September 2017.

Jenny Fleiss, the head of Jetblack, has been replaced by Faust. Fleiss is taking on an advisory role to Walmart's Chief Customer Officer Janey Whiteside and acting as an advisor and spokesperson to JetBlack.

The potential divestment of Jetblack is not the only change Walmart is considering. The company has also sold off the online vintage-themed retailer ModCloth, which it acquired in 2017.

These changes come amid broader upheaval throughout Walmart's digital business. Possible partners for a partnership, spin-off, or sale of Jetblack, as reported by Bloomberg and The Wall Street Journal, include Walmart and private equity firms.

It remains to be seen how these changes will impact Walmart's e-commerce business and its ability to compete with Amazon. However, it is clear that the company is taking drastic measures to turn its fortunes around.