After Amazon and Google has made their strategic moves with establishing same-day delivery, Macy's made a move of its' own. With rolling out same-day delivery in multiple US cities demographically fit for the service and considering every aspect of Macy's, experts are commenting the popular department store could end up being the front runner.
Forbes recently reported how Macy's could lead the pack and win out with same-day delivery. Macy's aggressively jumped all the way into the service last month, launching same-day delivery in Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, New Jersey, and Seattle. Sister company Bloomingdale's also rolled out the service Los Angeles, San Francisco, San Jose, and Chicago. Customers that place their online orders with Macy's by 1 pm, will have their items delivered same day within a selected two-hour delivery window option. Orders must be placed by 11 am on Sundays.
Macy’s also stacks up against the competition with its' pricing for the service. Big name retailers like Amazon offer its' Prime members same-day delivery for $5.99. However, Non-Prime members pay $9.99 for the first item and $.99 cents per additional item. Google Express charges $4.99 per order or customers can pay $10 per month and $95 per year. Wal-Mart even offers same-day delivery in multiple cities and its' service Walmart To Go costs $10, regardless of the order size. Wal-Mart does offer free same-day service in parts of Canada to compete with Amazon, yet currently not in the US.
Some experts weighed in on the prospect of Macy's be on track to very well get in front of the competition. President of Second To None, Jeff Hall, stated, “Same-day delivery, including two-hour delivery windows, will be hugely appealing, as it crushes so many of the inconveniences of shopping in-store: drive time, parking, traffic, etc. Macy’s is at the forefront of an emerging customer expectation that will be growing exponentially in the next few years.” With the growth of tech gadgets and the comfortability of shopping online, many shoppers are in fact engaging into more outside-of-the-store shopping.
In the article, president of Newmarketbuilders Carol Spieckerman said, “The big breakthrough is department stores finally coming around to the reality that not everyone loves to shop (a premise that most have myopically held onto despite evidence to the contrary). Department stores’ stubborn store-centricity may have held them back in the digital realm, but now Macy’s is showing everyone how to play a mean game of catch-up on multiple fronts.” Forbes also mentions how the industry insiders of the RetailWire BrainTrust were generally positive about Macy’s offering same-day delivery, a retailer known for being ahead of the omni-channel curve.
Deliv is the start-up delivery company handling the physical same-day service for Macy's utilizing a crowd-sourcing approach in which everyday people pick up and deliver for them. One Deliv driver will pick up multiple orders and deliver all of them, which is what a same-day courier like A-1 Express would offer also. The San Francisco courier has a national footprint and logistical expertise to perform cost-effective deliveries on time. A-1 Express is an experienced courier capable of accurate deliveries, in addition to returns, real-time address adjustments and more, which would be needed for Macy's during the busy holiday shopping season.
Reference: 11.21.14, www.forbes.com, Tom Ryan, Same-Day Delivery May Be A Win For Macy's