Walmart is planning to shut down Store No 8 – its innovation unit which includes in-home delivery service and text and voice shopping – after seven years.

The closure is to cut costs and test technology in new ways, The Wall Street Journal reported, citing an internal memo. Scott Eckert, SVP of the unit since June 2019, will also leave the company.

The retail giant launched Store No 8 in 2017 to incubate new ideas as well as to compete with rivals like Amazon. The unit focused on health and wellness, sustainability, social commerce, the metaverse, customer experience and loyalty, and decentralized commerce. 

Since its launch, about 300 staff members of the unit have transferred to other positions within the company.

“When we stood up Store No 8, it was the right decision at that time,” a Walmart spokesperson told Retail Dive.

“We’ve stood up global technology, product and design organizations that work alongside the business to innovate with speed – and the responsibility to shape the future of retail is now shared across the company.”

The company reported attributable net income of $453 million for the third quarter, with net sales up 5.3 per cent to $159.44 billion.