Retailers Prepare for the Holiday Season

August 29, 2019


As e-commerce takes a larger chunk of retail sales and customers expect faster delivery service times, retailers are working hard to respond to these needs. A recent CNBC article highlights Best Buy’s efforts. The electronics retailer has three warehouse facilities, described as metro e-commerce centers. Its facility in Piscataway, serves New Jersey, New York and Philadelphia and opened in March. The Los Angeles center opened last fall. And the newest one, in Chicago, opened in June.

These metro e-commerce centers differ from the company’s six regional distribution centers as they’re much closer to customers’ homes and are able to service next-day orders. They also help with delivering bulky appliances to shoppers’ houses.

These three facilities allow Best Buy to reach up to 50 million people with free next-day delivery, giving customers the ability to make purchases as late as 8 p.m. and have the order shipped out that same day.

For Target, much of its investment and focus has been on in-store fulfillment. This in-store fulfillment focus is part of a larger strategy that includes in-store pickup, drive-up and Shipt same-day deliver and now accounts for more than one-third of the retailer's total fulfillment. In fact, the retailer noted that as it moved away from upstream distribution centers for order fulfillment to its stores, costs declined by more than 40% and costs related to same-day services went down by 90%.

Meanwhile, Walmart’s e-commerce strategy is now taking shape with sales rising 37% during the most recent quarter. Its NextDay shipping program now covers approximately 75% of the U.S. population. In addition, more than 1,100 stores offer same-day grocery delivery, more than 2,700 stores offer the ability to order groceries online and pick them up in-store and 1,200 stores have pickup towers for online orders.

We recently took a look at some of the trends surrounding Buy Online, Pick Up in Store (BOPIS) and compiled the findings in a white paper, free to download here. As a retailer, these trends can impact shipping spend with FedEx, UPS and the USPS. Find out how by contacting us today.

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Retailers Prepare for the Holiday Season

August 29, 2019


As e-commerce takes a larger chunk of retail sales and customers expect faster delivery service times, retailers are working hard to respond to these needs. A recent CNBC article highlights Best Buy’s efforts. The electronics retailer has three warehouse facilities, described as metro e-commerce centers. Its facility in Piscataway, serves New Jersey, New York and Philadelphia and opened in March. The Los Angeles center opened last fall. And the newest one, in Chicago, opened in June. These metro e-commerce centers differ from the company’s six regional distribution centers as they’re much closer to customers’ homes and are able to service next-day orders. They also help with delivering bulky appliances to shoppers’ houses. These three facilities allow Best Buy to reach up to 50 million people with free next-day delivery, giving customers the ability to make purchases as late as 8 p.m. and have the order shipped out that same day. For Target, much of its investment and focus has been on in-store fulfillment. This in-store fulfillment focus is part of a larger strategy that includes in-store pickup, drive-up and Shipt same-day deliver and now accounts for more than one-third of the retailer's total fulfillment. In fact, the retailer noted that as it moved away from upstream distribution centers for order fulfillment to its stores, costs declined by more than 40% and costs related to same-day services went down by 90%. Meanwhile, Walmart’s e-commerce strategy is now taking shape with sales rising 37% during the most recent quarter. Its NextDay shipping program now covers approximately 75% of the U.S. population. In addition, more than 1,100 stores offer same-day grocery delivery, more than 2,700 stores offer the ability to order groceries online and pick them up in-store and 1,200 stores have pickup towers for online orders. We recently took a look at some of the trends surrounding Buy Online, Pick Up in Store (BOPIS) and compiled the findings in a white paper, free to download here. As a retailer, these trends can impact shipping spend with FedEx, UPS and the USPS. Find out how by contacting us today.

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