Monthly Archives: February 2015

Heavy Investments By Macy’s Online Will Boost Same-Day Delivery

Atlanta CourierWhen Macy’s started same-day delivery heavily last year, it was joining the race with Google, Amazon, Wal-Mart and so many others to expand online retail.  Shoppers want more and can handle it with tech gadgets for instant gratification ordering.  Every big name retailer made heavy investments into it and Macy’s did also because the department leader, experts say, has all the ideal components that fits to thrive with last-mile deliveries.  From Macy’s recent announcement, its’ new online business strategies will certainly impact its’ delivery programs.

Macy’s huge investments will extend from a number of store and merchandising moves.  Macy’s Inc. announced last week that it will merge its online and store merchandising marketing teams.  Nikki Baird, managing partner at Retail Systems Research, a research and consulting firm, stated Macy’s is “one unified merchandising and marketing organization—a hybrid of store and online buying”.  She also stated many organizations “are looking at combining merchandising teams across channels, and combining marketing teams across channels, but not both together. In fact, I know more retailers that are looking at splitting marketing off of merchandising so that it’s not so product focused. The intent is to let marketing focus more on brand and customer, and let merchandising focus more on product.”

The department store leader will also hire 150 more employees for its digital center in San Francisco, close 14 stores while opening two, and will lower the number of workers in each store.  Online retail is driving these changes for less brick-and-mortar stores and greater efficiency.  Chairman and CEO stated, “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.”

Lundgren also touted 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.”

Eight major US cities were targeted by Macy’s for same-day delivery.  Those cities included Los Angeles, San Jose, Houston, San Francisco, Seattle, Washington DC, New Jersey, and Chicago.  Bloomingdale’s launched in some of the same cities.  The increase in online investments also involves higher levels of fulfilling orders from all full-line Macy’s and Bloomingdale’s stores.  Macy’s will also utilize its’ five web-focused fulfillment centers in Arizona, California, Connecticut, Tennessee and West Virginia.  Direct shipment to customers from stores, if within close proximity to stores, will more than likely be delivered by Deliv, its’ contracted delivery partner.

Other retailers have various delivery sources and partners, such as a same-day courier like AQuickDelivery, performing the actual service.  The Atlanta courier has the logistical expertise to create efficient same-day delivery solutions, streamlining direct store to consumer online order fulfillment.  In turn, online retail will thrive.

Same-Day Delivery Working, Big Business For Retailers Now

Retail StoreThe business environment and the tools to make same-day delivery a big business is certainly in place now and retailers know it.  Big name retailers like Amazon, Macy’s, Wal-Mart, Google, eBay and others have all implemented some form of the service and show no signs of slowing down.  With online retail’s forecast for future growth at $500 billion by 2018, the door is wide open to get shoppers their products fast and as convenient as technology will allow.  Same-day delivery has become a huge staple for the retail industry.

A recent report in USA Today confirms the growth of same-day delivery is not a fluke, but it really is now a revenue generator for companies.  It is not just a far-fetched business model that no e-retailer would ever get a grasp on how to effectively manage costs and demographically have the volume it takes to be sustainable.  With enhanced technology, costs are able to be pinpointed and algorithms created for maximized delivery systems for optimal deliveries by a same-day courier like AQuickDelivery.

One example of how one e-retailer is making its’ mark the article spotlighted was Instacart.  The delivery company offers one-hour grocery delivery services in 12 cities via a network of personal shoppers, which are contracted couriers that pick up and deliver items.  Over a decide ago, you had companies like Webvan that built $35 million distribution centers and ran its’ own delivery fleet to perform same-day delivery.  With technology, Instacart can run its’ ship with 70 employees, consisting of just engineers and administrators, partner with couriers and get the same results a lot easier.

The article mentions how last year a number of businesses jumped into the race for last-mile deliveries and has success.  Companies like DoorDash, Sprig, and SpoonRocket all raise multi-millions in fund investments.  GrubHub IPO’d in April last year and now is worth $3 billion.  Berlin-based delivery company Hero raised $350 million and is now value over $1 billion.  These technology-based, innovative delivery start-ups have all found their own niche in the game with sound business models that work for not only themselves, but for the retail partners with the actual products.  This is the goal, and the delivery company that proves it, gets the investment capital.

Physical store retailers went head first into same-day delivery, like Macy’s.  Late last year, the department store launched same-day services in major US cities, including 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.  Macy’s made a big push right before the holiday season began and has touted already this year that it will continue to make big investments into online retail.  It partnered with Deliv to perform its’ deliveries, another fairly new delivery company.

Big business is now not only in the product, but the delivery of it, sense technology and tech gadgets have made it ideal for shoppers to save the trip to the store.  AQuickDelivery can simply bring an online order right to their door.  The Atlanta courier is a viable option for partnering with for implementing same-day logistic solutions.  Retailers see now how the money can be made, and it’s all about the delivery.

Reference:  1.6.15, USA Today, Michael Moe, There’s big money in the home delivery business

Will Same-Day Delivery Success Depend On The Driver?

Courier ServiceIt’s no secret that e-commerce is experiencing growth like never before, estimating to reach $500 billion by 2018.  With the use of tech gadgets and simplifying shopping via same-day delivery, e-retail giants like Google and Amazon are deciding to take the hit upfront in order to capitalize on the future expectations with online business.  Indeed, experts are saying the big boys are making huge investments to make same-day delivery work, yet is it a win-win for everyone, including the drivers themselves.

Behind the big company is the little guy in the back–the one that’s making it all work.  The Huffington Post recently released an article related to Amazon’s same-day delivery growth during the holiday season, closing out the year in grand style.  It follows a tough third quarter for the e-retail leader, experiencing an over $437 million loss.  This wasn’t just because of sales.  Again, the big investments into its’ same-day delivery programs did the trick, expanding into 8 more major US cities, including New York City, Baltimore, Dallas, Indianapolis, Dallas, Washington DC, Philadelphia, and Atlanta.

With the holiday sales figures announced in one of Amazon’s latest press releases, the retailer shipped 10 times as many items as it did last year.  This is remarkable and touts that the big push with city expansions within the last few months of the year were worth it.  However, is the growth coming at a cost; not to Amazon or the shopper, but to the driver–the guy in the back.  This aspect of same-day delivery need to be revisited.

Huffington spotlighted a previous article earlier this year of one driver, Myron Ballard, and the cons he had to carry along with his packages.  He stated, “Ballard had to purchase the cargo van he drives for work. He doesn’t get reimbursed for the wear and tear he puts on it; for the gasoline he pours into it on a near-daily basis; for the auto insurance he needs to carry; or for the parking tickets he inevitably racks up downtown. He doesn’t even get reimbursed for the LaserShip uniform he’s obliged to purchase and wear”.  The article also mentions how Ballard delivers about 150 packages per day for Amazon, however, he only may have earned $225.

Ballard is an independent driver via LaserShip, a shipping service Amazon partnered with to perform same-day delivery in Washington DC.  Other retailers like Macy’s, Toys-R-Us, Wal-Green’s, and more are all have partnered with a courier to help execute last-mile deliveries also.  A same-day courier like AQuickDelivery would be ideal for a retailer looking for a courier with the logistical expertise to create an optimal same-day delivery solution.  The Atlanta courier has years of experience delivering for large companies with cost savings, including keeping their drivers happy.  At the end of the day, the driver has to be considered as part of the success of same-day delivery too.

Reference:  12.26.14, Huffington Post, Alexander C. Kaufman, Amazon’s Enormous Same-Day Delivery Growth Comes At A Price

Deliv Working With Malls For Same-Day Delivery

Mall ShoppingMalls are always a hot spot for shopping and quiet is kept, they are seeking after a way to keep customers coming back for more.  It appears Deliv has come up with a way to partner with mall retail stores to offer shoppers a deal they can’t refuse.  Ask Deliv CEO Daphne Carmeli and she will tell you her plan is to do it with same-day delivery, making it a “no-brainer” for mall shopping.

The Washington Post recently released an article about Deliv’s pursuit of mastering same-day delivery and its’ service model.  Started in 2012, Deliv now has 250 retail partners, including Macy’s, Foot Locker, Brooks Brothers and Neiman Marcus. The delivery company has also expanded into 8 metropolitan areas nationwide.  This falls in line with a number of big retailers that roll out the service in major US cities that are densely populated.  Same-day delivery must have volume, and in Deliv’s case, malls in these areas definitely do the trick.

“I can walk around Disneyland, buy stuff, and have it show up at my hotel. Why can’t I do that at the mall?”, said Carmeli as she made her pitch to mall owner and Macerich operator Art Coppola.  Her philosophy is different and more complex than just delivering something fast at a cheap price.  “The market opportunity for same-day delivery has very little to do with meeting the needs of people who want things fast,” Carmeli said.  She feels shoppers want customization, coupled with predictability and flexibility.

This means shoppers have options when they will get purchases and where their delivered, regardless of where they physically are.  Within a two-hour window, their items arrive between their haircut and their kid’s soccer game.  If their delivery is scheduled for 6:30pm, but at the last minute, the shopper needs to bump the time up by 30 minutes, Deliv can do it.  What is also attractive to malls is the ability for customers to have their bags delivered to their home for $5 bucks, instead of totting them around all day.

Macerich vice president Kurt Ivey stated in the article, “we are not making money on this.  We are not trying to generate revenue, we are trying to enhance the [shopping] experience.”  Deliv gives malls the service that keeps the shopper at the mall.  Ivey mentioned how most of the time, if a shopper has to make a trip to their car to unload their bags, those same shoppers usually don’t come back into the mall.  There are several reasons malls like the Deliv idea and four major mall operators — Simon, Westfield, Macerich and GGP — have all become Deliv investors.

Google and Amazon are just to name a few retailers that have recently expanded right before the holiday shopping rush.  Google and Deliv have the commonality of partnering with retailers to get their products literally moving.  A same-day courier like AQuickDelivery is a viable option for last-mile deliveries in the Atlanta area.  The Atlanta courier has the driver staff and same-day delivery expertise to develop cost-effective solutions for services at malls.

Reference:  12.12.14, Washington Post, Sarah Halzack, Will the same-day delivery war be won by a competitor you’ve never heard of?