Kate Spades Goes Online Store Pick Up, Could Same-Day Delivery Be Next?

With the direction that online retail is going, more and more companies are looking to capitalize on e-commerce, not just brick-and-mortar sales. The industry is expect to increase to $500 billion by 2018. One of the ways physical store companies and e-retailers are connecting omnichannels to create seamless sales between the web and the store is via online ordering/in-store pick up. Kate Spade appears to implementing the service to move forward to establish itself further online.

Internet Retailer recently reported that luxury apparel and accessories manufacturer Kate Spade is planning to launch a buy online, pick up in store service later this year. The fourth quarter numbers show all the reasons why Spade is deciding to make the huge strategic expansion move. It's net revenue last year went up 7.6% to $429.0 million, from $398.6 million the previous year. Sales from Kate Spade North America reached $371.3 million, up 13.7% from $326.7 million.

At the same time, sales from Kate Spade International of $52.1 million, down 13.3% from $60.1 million last year. Also, the retailer's net income went drastically down to $61.5 million, a 51.4% drop from $126.5 million the previous year. This means that Kate Spade is looking to make the necessary adjustments to boost net income. It's clear that retailers are seeking to do what it takes to capture more of the tech-based shoppers that demand more convenience online.

Online retail is on the rise and Kate Spade knows it. Within the article, Chief operating officer George Carrara said the company is looking to blur the lines between offline and online shopping as consumer preferences evolve. He stated, “We know that regardless of which (way) she actually transacts, whether that’s online or in a store, that that journey is increasingly starting in the online space, which is certainly advantageous to us in terms of our ability to tell great stories and build engagement in the online experience”.

Wal-Mart has several major US cities that it offers its version of in-store pick up service. Wal-MarttoGo allows customers to place their orders online and perform their own pick-up at select Wal-Mart stores. The customer simply is able to order online and pick up curbside from the designated store. The retail leader has its' hand in store pick-up, as well as offering Same-Day Delivery.

Kate Spade could go in this direction in the future, and a Same-Day Courier like A-1 Express provides pick up and delivery services nationwide, especially with return items. The Pittsburgh Courier has the ability to partner with retailers to build their online presence and develop efficient courier logistic solutions, even for Kate Spade.

Reference: 3.7.16, www.internetretailer.com, Matt Linder, Kate Spade will launch buy online, pickup in store