Jet.com is ending its two-year relationship with Costco.
The ecommerce company, which was acquired by Costco rival Walmart last year, is dropping hundreds of Costco products sold under the Kirkland Signature brand from its website, Bloomberg reports.
The move could be a setback for both Jet and Costco.
Jet was the third biggest seller of Costco products online in the first half of 2016, according to Bloomberg.
But it also makes sense for Walmart, which is trying to drive business to its own warehouse chain, Sam’s Club, and its private-label brand, Member’s Mark.
Sam’s Club says it recently “reinvented” its Member’s Mark brand by consolidating a number of other private-label brands under that name and adding 300 new products to the label.
“At one point, we had 21 private labels,” Chandra Holt, vice president of private brands at Sam’s Club, said in a news release from April. “So the first thing I set out to do was to simplify for our members.”
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