When 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.