Macy’s: same day delivery

October 15, 2019
ModernRetail
October 15, 2019
ModernRetail

Macy’s didn’t say exactly when the free same-day delivery pilot will end. But Andrew Lipsman, an e-commerce analyst for eMarketer, sees it as a temporary play to win over holiday shoppers.

While the strongest use case for same-day delivery has historically been for perishable items like groceries, Amazon has pushed every brick-and-mortar retailers to offer faster delivery

“If you are a consumer, and you are used to ordering everything from Amazon, then it would seem weird that you couldn’t get things very quickly from other retailers like Macy’s, even though they are in different product categories,” said Jason Goldberg, chief commerce officer at Publicis.

Evan Mack, a research associate for Gartner L2, noted that Macy’s has in recent years promoted same-day fulfillment more frequently on its website, and now offers customers the ability to filter by products that are available for same-day delivery or in-store pickup that day.

But, getting customers to choose Macy’s over competitors by offering faster delivery options is only half the battle. Macy’s also has to figure out how to do it cost-effectively. Macy’s chief financial officer Paula Price has said that Macy’s was able to offset increased delivery costs in 2018 by improving margins on its merchandising. But it may not be able to do that forever.

“This is where the market is going, so the better that any retailer gets to providing that sort of immediacy, the better they’re going to get at navigating the transition,” Lipsman said.

 

 

Source: ModernRetail (2019), Why Macy’s is testing free same-day delivery.
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