Macy's Increased Online Investments Will Help It's Same-Day Delivery

It was clear that Amazon, Wal-Mart, Google, and other big name retailers are taking their online retail to another level, even with implementing same-day delivery in multiple US cities. This has been a part of maneuvering into position, as online retail is growing on pace to spike to $500 billion by 2018. Yet, department store leader Macy's has a game plan of its' own.

Internet Retailer recently reported how Macy's has decided coming into the new year, that it was going to step up its' game regarding its' investments into online retail. Macy’s announced a few days ago that it will make significant changes. It will merge its online and store merchandising marketing teams, hire 150 more employees for its digital center in San Francisco, close 14 stores while opening two new ones, and decrease the number of workers per store. Macy's could be turning that spending toward beefing up its' online presence.

In the report, chairman and CEO Terry Lundgren spoke of how technology is affecting their business and Macy's is making investments to change with it. "Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones. We must continue to invest in our business to focus on where the customer is headed—to prepare for what's next." Shoppers have more avenues to find deals and discounts online via tech gadgets, so retailers need to be there with something attractive or they will move on. Macy's has the market for growth and there's no reason not to create online innovation, especially for its' loyal customers.

Lundgren also stated in the article, "Going forward, Macy's and Bloomingdale's will be better able to move more quickly and nimbly to select merchandise, assort inventories and serve total customer demand, no matter how, when or where the customer shops. Some redundant activity also can be avoided to accelerate speed to market, partner more effectively with vendor resources and ensure the merchandising organizations are more responsive to the marketplace in making and implementing decisions". The key is mobility with the customer as a retailer, especially as a brick-and-mortar store. Shopper convenience will meet the service-driven demand as well.

Macy's has also performed a strong launch of same-day delivery in multiple US cities late last year. Those cities included Los Angeles, San Francisco, San Jose, Seattle, Houston, Chicago, Washington DC, and New Jersey. Bloomingdale's, its' sister company, also did in Chicago, Los Angeles, San Francisco and San Jose. It partnered with Deliv to perform its' deliveries, another fairly new delivery company. Partnering with Deliv, Macy's set its' pricing at flat rate of $5 for orders over $99. Shoppers with smaller orders pay standard shipping rates, in additional to the flat rate. Same-day delivery probably brought out some other findings to boost Macy's e-commerce.

Some have stated this is a bold move by Macy's, yet other retailers should take note of the aggression. Mayc's online investing within directly affect its' same-day delivery, which will increase online sales. A same-day courier like A-1 Express is a viable option for any retailer looking to increase their web investments. Other brick-and-mortar retailers can partner with the San Francisco courier and make big gains online with same-day delivery.

Reference: 1.8.15, Internet Retailer, Don Davis, Macy’s steps up its online investments