retail news in context, analysis with attitude

• The Wall Street Journal reports that Amazon is shutting down its Quidsi division, which runs Diapers.com, because it is unprofitable. Amazon bought Quidsi in 2010 for more than $500 million.

Ironically, Amazon bought Quidsi from Marc Lore, who subsequently left the company, waited out a period covered by a noncompete clause, and then started Jet, which he recently sold to Walmart for $3.3 billion ... for which he is now running all of its e-commerce business, positioning it for a battle against Amazon.

The Journal writes that "Quidsi’s Diapers.com, which launched in 2005, helped prove that consumers would buy household products online if a broad selection was paired with free, fast shipping. By the time of the acquisition in late 2010, however, Amazon had undercut its competitor on diaper prices and launched a service that offered free two-day shipping for new parents for three months or more.

"The Quidsi developers will be working on a current focus for Amazon: food and groceries, as it seeks a bigger share of consumer spending."
KC's View:
Y'think anyone at Walmart looks at that whole "Quidsi is unprofitable" thing and gulps a little bit? And maybe crosses his or her fingers?