Fast delivery has become a battleground for retailers this holiday season, with traditional retail giants such as Target and Walmart offering 24-hour delivery to rival e-commerce leader amazon's next-day delivery.
U.S. retail giants are wooing consumers with faster delivery services, the Wall Street journal reported, adding new tricks to the already competitive shopping season from Thanksgiving to Christmas. Amazon spent $1.5 billion this quarter to expand 24-hour delivery to the home. "We are adding new shipping capacity and adding more options in the distribution centers adjacent to consumers," said lenz, vice President of amazon's global delivery experience. Consumers say they are looking for faster delivery options.
While many traditional retailers can't match them, wal-mart and target are consolidating their retail landscape by increasing their distribution capabilities or offering in-store shopping. The two retail giants saw strong online sales last quarter and continued to see increased foot traffic. But walmart and target's "every other day" service covers a relatively small range of goods compared with amazon.
More than 10 million items on amazon's website are available every other day, with the goal of expanding to more than 100 million items. Wal-mart's next-day delivery covers about 220,000 items, while target stores include 100,000 to 150,000 items, according to Morgan Stanley analyst David gutman. Both major retailers offer free diurnal delivery for orders over $35.
Unlike amazon, which offers fast delivery through hundreds of warehouse and logistics centers, target USES its advantage of 1,800 locations to quickly deliver goods to consumers, while wal-mart has six logistics parks and more than 4,700 locations across the United States. Both major retailers offer "no membership fee for every other day," while amazon charges Prime members $119 a year.
Despite rising costs for many retailers as a result of the U.S.
Electronics at large retailers rose 2.3 percent year-over-year in the october-november period, while all products on average rose just 0.9 percent, said David Anderson, vice President of Profitero, a retail analytics firm.