Macy's Expands Same-Day Delivery Again

There is no slowing down for Macy's with same-day delivery. Earlier this year, Macy's has announced that it was moving its' fulfillment center in West Sacramento, California, to a larger facility. It's clear what the reason for the investment is. Macy's has been planning to expand the service, and now, it has made another move to put their facilities to use.

Macy's has announced yet another expansion of same-day delivery. USA Today highlighted days ago the department store retailer is continuing to grow and be a frontrunner for the fast service within the store-based retail industry, mainly with its' sights on competing against Amazon. Macy's is planning on entering into 14 new markets with the service beginning this month. More than likely, the retailer is gearing up early for the holiday season.

Late last year prior to the holiday season, Macy's launched same-day delivery in 8 major US cities, including San Francisco, San Jose, Los Angeles, Seattle, Chicago, Houston, Washington DC, and New Jersey. Bloomingdale's, its' sister company, launched the service out in 4 of those cities: San Francisco, Los Angeles, San Jose, and Chicago. Macy's offers customers same-day delivery for all online orders placed by 1pm. Orders must be placed by 11 am on Sundays as well.

The fast service is one reason Macy's is making huge investments into its' growth. Macy's stated in the report that it expects capital expenditures to hit $1.2 billion this year, an increase from $1.07 billion in 2014. The online retail market is anticipated to grow to $500 billion by 2018, and Macy's knows it. The more shoppers become use to tech gadgets getting items to their door step, the less time they'll spend commuting to brick-and-mortar stores. Yes, customers will still travel to stores to shop; however, Macy's wants to capture those shoppers that decide to buy online.

Macy's is racing for good reason. Google is on the move, as well as Amazon, which recently rolled out free same-day service in California to Prime Members. The retailer has stated that more major US cities are to come, including the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta. There will be more than 500 cities and towns included at the launch in the future.

As Macy's expands, there will be more physical store retailers that desire to create more sales outside of their stores to compete too. Just like Macy's, other retailers can obtain a delivery partner to perform their deliveries for them. A same-day courier like A-1 Express has all of the components needed for a sound last-mile delivery program, including a national footprint to meet current same-day expectations and future expansion. As a San Diego Courier that knows courier logistics, A-1 Express can help Macy's and other retailers make online retail a core competency.

Reference: 8.5.15, USA Today, Hadley Malcolm, Macy's expands same-day delivery

Instacart Taking On Amazon For Same-Day Online Groceries

Amazon is expected to begin one of its' most anticipated business ventures--online grocery deliveries. CNN Money recently reported Instacart founder Apoorva Mehta is taking online giant Amazon, as they both go full steam ahead towards revolutionizing the online grocery business.

How can this one man and his new company take on the world's largest online retailer? Mehta is an ex-Amazon engineer, therefore, he knows something about the online market and how to make it work. Being a former employee of Amazon more than likely has armed him to be able to make this big move. He is familiar with the cons of AmazonFresh and has the experience backing his company Instacart. If anyone has an edge and the knowledge to do it, it just might be Mehta.

Instacart's report more than likely comes in response to Amazon's announcing its' plan to expand AmazonFresh, which will incorporate the selling online food with high-margin item deliveries. Amazon says AmazonFresh has been tested for at least five years in hometown Seattle and is now ready to launch in other cities. The first two cities will be Los Angeles and San Francisco later this year. In Seattle, Amazon has utilized its' own fleet of trucks to perform deliveries of fresh food products.

Instead of building new warehouses in nearby areas like Amazon, Instacart is using an existing infrastructure, one that includes well-known supermarkets and 200 contracted personal shoppers across the San Francisco Bay, in which Instacart is available for its' customers.

Amazon appears to be taking an approach to the online grocery market that is, in Apoorva Mehta's opinion, is unwise. The online leader strategy is to gain their online food profits by selling other products, at the same time, that consumers already order online. Mehta's responded to this strategy in the article stating, "We were delivering Xboxes with your groceries. That may seem like an interesting idea, but how many times do you need to buy an Xbox?"

For the most effective method of delivery, online both Amazon and Instacart will have to have the online groceries arrive at a shopper's doorstep fast. Instacart may very well utilize contracted shoppers, however, Amazon stated they may utilize same-day couriers to handle their food deliveries. Competitors such as Wal-Mart and even Target, are already testing same-day delivery within several city markets in pursuit of online grocery deliveries.

Mehta's Instacart appears to have a good plan, however, the delivery aspect will be vital for its' online grocery execution. Same-day courier services like A-1 Express has a national footprint for same-day delivery and will be just the right fit to meet online demand. This San Diego Courier can partner with Instacart and develop an optimal courier logistics solution. A-1 Express has a high level of courier expertise and can provide quick implementation of food deliveries and keep up with company expansion, as the online food industry grows.

References: 6.18.13, CNNMoney, JP Mangalindan, This ex-Amazon engineer wants to outsmart Jeff Bezos

US Postal Service Ending Satuday Service On August 5th, Use Couriers For Saturday Deliveries

The US Postal Service has had its' share of financial challenges in recent years. The Post Office, at one point was losing $25 million per day. The mail giant had to make some pivotal decisions for its' literal survival and it appears this past week, it did.

CNNMoney has reported the US Postal Service has announced it will end Saturday delivery service of first class mail as of August 13th of this year. The company will stop delivering and collecting other types of mail as well. However, it will continue performing package deliveries. The new service change will begin to save the US Postal Service $2 billion per year. Postmaster general and CEO Patrick Donahoe stated, "It's a responsible decision. It makes common sense". The USPS has been providing Saturday delivery service to US citizens since 1863.

The USPS will pursue to handle the service change as best as it can. The report stated 22,500 jobs will be affected by ending Saturday service. The company is opting to eliminate overtime, increase use part-time employees, and offer buyouts, opposed to resorting to a layoff strategy. There will be no changes to offices that are currently open on Saturdays and they will still conduct po box deliveries. The USPS understands that its' employees need to keep their jobs.

The service cut comes as a result of the financial downward spiral and losses the USPS has incurred since 2006. The root cause of their current state is its' government mandate to pre-funded health benefits for future retires, which amounts to $5.5 billion due each year. In 2012, the company defaulted on $11 billion and hit the ceiling on their US Treasury $15 billion credit limit. Congress did discuss a new five-year plan, which included ending the billion dollar reoccurring payment, however, there has been no resolve thus far. The Postal Service went from no debt in 2005, to $25 million per day in losses as of last year. They could no longer wait on the government and acted now.

First-class mail volume for the USPS has decreased 25% since 2006, and is forecasted to continue to decline. The US Postal Service is seeking other ways for sales growth. The mailing company is currently testing same-day delivery via Metro Post in San Francisco in hopes to gain ground in another service market. It is no secret same-day delivery is a viable option that customers desire and it works. However, with the USPS not providing Saturday deliveries, the question who will customers and business shippers turn to for their mailing service needs.

Same-day courier services like A-1 Express can assist individuals and businesses make their Saturday mail deliveries. The San Diego courier offers same-day delivery mail solutions from small packages to palletized freight fast. With their courier expertise and route optimization, A-1 Express is able to help companies make a seamless transition from usage of the Postal Services' Saturday delivery service. A courier can meet the increased customer Saturday delivery demand that is coming once the USPS ends their service in August.

Reference: 2.6.13, CNN Money, Jennifer Liberto, Postal Service to end Saturday mail service Aug. 5

Retailers Absorb Hit Of Low Holiday Sales, Better Deliveries Helped Online Sales Grow

With a successful Black Friday and Thanksgiving having a record of four $1 billion days of sales, every retailer, whether a small business and large corporation, expected to see more of it. The holiday sales season was on a record pace that the economy had not seen consistently in a while. However, those sales numbers changed for the worst.

Holiday sales grew at the lowest since 2008 reported Fox News via the Associated Press. Sales were expected to grow 3 to 4 percent this year, however, they grew a low 0.7 percent for the two months before Christmas. Even in the midst of the 2008 recession, sales grew at 2 to 3 percent. In 2011, sales increased by 4 to 5 percent. "A lot of the Christmas spirit was left behind way back in Black Friday weekend. We had one reason after another for consumers to say, 'I'm going to stick to my list and not go beyond it.'", stated Marshal Cohen, chief research analyst at NPD Incorporated. It appears most shoppers planned to do the bulk of their shopping during the popular four-day sales extravaganza. Shoppers appeared to not be interested in buying more gifts after that.

Numerous of events had an affect on consumer spending this holiday season. Storm Sandy put the northeast region of the country in the position to spend their extra money on recovery. This part of the country accounts for 24 percent of total retail sales. The devastation of the Newtown shooting right before Christmas caused many Americans to center their attention elsewhere than shopping. The uncertainty of the economy and looming fiscal cliff going into 2013 weighed in also.

Online sales for the holidays grew at least 8.4 percent reported payments card company MasterCard. In contrast, Chase Paymentech released online sales went up 15.3 percent. Either way, retailers are happy they did gain ground online, which makes up 10 percent of holiday sales. Many shoppers utilized their smartphones, iPads, and more to find the best online deals. In addition to deals, online sales also increased due to retailers offering better deliveries. Retailers offered offered later cut-off dates and guaranteed delivery on Christmas Eve, along with free shipping.

Delivering online products fast is becoming more attractive to shoppers, even same-day delivery. Retailers like Wal-Mart, eBay and Macy's are currently offering same-day delivery of their products and testing these services throughout the US. Same-day delivery is as close as shoppers can get to a physical store, which they are able to save time and money. The retailer that can perform same-day delivery will be successful in the years to come.

Same-day couriers like A-1 Express is a viable option to help your order fulfillment and online growth. This San Diego courier is an experienced, professional courier with the ability to fast! From small packages to palletized freight, A-1 Express can help retailers implement courier logistic solutions to meet online demand and expand quickly nationwide.

Reference: 12.26.12. Associated Press, US retailers report weakest holiday sales since 2008; Internet Retailer, Zak Stambor, Mixed messages on holiday sales