The US is not the only place where same-day delivery is thriving in the retail industry. It’s also expanding in the UK via Argos. The high-street retailer is doing what a lot of retailers are doing, which is gearing up of the holiday season. They are making the necessary business moves that other retailers are doing as well, going toe-to-toe with Amazon.
Argos’ biggest reason for jumping head first into same-day delivery is Amazon, setting itself up to have the service up and running before Black Friday. The Guardian reported how Argos has launched its’ Fast Track delivery service for 20,000 products with flat fee of £3.95, which is less expensive than Amazon’s Prime Now. In the UK, Amazon’s service costs £6.99 per order and is said to only be available within certain London postcodes. In the US, Amazon customers pay $99 per year and £79 a year in the UK.
John Walden, chief executive of Argos’s owner, Home Retail Group, touted in the article in regards to same-day delivery becoming a more staple option for customers. “Argos led the way with click and collect 15 years ago, and customers can continue to shop with us in the traditional ways if they choose to,” Walden said. “But we believe Fast Track is the next big innovation and brings shopping into the digital age for customers. No other retailer can offer the breadth of products immediately or at that speed.”
Amazon continues to be the retailer that other retailers are aggressively competing against worldwide. Amazon vast expansion affirms its’ drive to not only offer same-day delivery in the US nationwide, but offer it free. It rolled out free same-day service in 14 Los Angeles metropolitan cities earlier this year and more cities are to come. Amazon has same-day delivery in San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Atlanta, and Washington DC. This is just a snapshot of what Amazon could do on a global scale at the pace of their growth.
Same-day delivery by Argos at the low price may have some drawbacks; however, Sophia McCarthy, a retail analyst with Conlumino, says the company can’t risk not to. “There is no doubt that the introduction of a same-day delivery service for as little as £3.95 is going to be an expensive business for Argos, but the costs of it not competing on delivery are likely to be even higher – its last trading update revealed further sales declines as it struggled to evolve its traditional catalogue to fit the demands of the modern consumer.”
What Argos is doing is an example of how the retail industry is shifting how to improve service levels and meet shopper demands. A same-day courier like AQuickDelivery is partnering with retailers in the US to provide the same-day delivery there. Whether retailers utilize the Atlanta Courier or another provider to perform last-mile deliveries, it’s clear that same-day delivery is going to continue to expand in the US and abroad.
Reference: 10.6.15, www.theguardian.com, Rebecca Smithers, Half of Millennials Want Same-Day Delivery, Argos squares up to Amazon with same-day delivery across UK