Inc. has an interview with Target CEO Brian Cornell in which he says that “same-day delivery is at the top of shoppers’ wish lists this holiday season,” and that expectations about this service is leading to consumers’ “waiting until the last minute to make purchases.”
Some context from the story:
“Same-day delivery services remain the bread and butter of retail giants like Amazon and Walmart, and their expedited service options make them a default choice for holiday buyers. Cornell said Target is prepared to join the fight this holiday season, after a slow and quiet buildout of its own rapid fulfilment centers.
“In 2017, Target invested $550 million in the home delivery service Shipt-a modest outlay compared to the billions Amazon and Walmart have spent in the same-day-delivery space. Target’s omnichannel model now lets consumers shop in-store and via the retailer’s app and website for same-day or two-day delivery.
“Cornell says this investment in sortation centers – or what Target calls its ‘stores-as-hubs’ strategy, where workers prepare same-day local delivery for online orders – has prepared them with the infrastructure to support last minute holiday shopping.”
The story also notes that “according to a recent Gallup Poll, half of U.S. shoppers will do most of their holiday shopping in December. Those waiting until the last minute are holding out for the best possible prices and the availability of fast fulfilment sources.”
KC’s View:
I know there have been ebbs and flows when it comes to e-grocery in the post-pandemic environment, but it seems to me that this continued desire for same-day delivery underlines the fact that a growing number of shoppers continue to have high expectations in this category.
And when some retailers offer same-day delivery, it puts pressure on all retailers to offer it.
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