One year after offering the service to customers in New York, Walmart's Jet.com will no longer deliver fresh groceries, according to a report by CNBC.

The retailer said that Jet.com will continue selling dry goods and other general merchandise. Since Walmart bought Jet.com for US$3.3bn in 2016, fresh food has been the smallest part of its business.

Following its acquisition, Walmart began folding Jet.com staff into its organization earlier this year.

"We learned a lot by testing Jet fresh grocery delivery in New York City," a Walmart spokesperson was quoted saying.

"We recognized the important role our stores play in providing an efficient way to offer groceries to customers through pickup and delivery."

Walmart's Jet.com fulfillment center in the Brox that made deliveries will be closed. Walmart will also lay off around 200 Jet.com employees.

This comes after the retailer reported strong grocery sales recently.

CNBC commented, "while Walmart doesn't deliver fresh food to Manhattan, the retailer's massive grocery business has made it less crucial for Jet.com to do the same".

Marc Lore, co-founder of Jet.com who is now head of Walmart's e-commerce department gave a quote to CNBC.

"We don't have the same need for a dedicated leader."

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