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Surprise: Same-Day Delivery Doesn’t Spell the Downfall of Brick & Mortar

Posted by Joanna Gonzales on Apr 10, 2018 1:10:00 PM

spell the downfallRetailers are racing against the clock to make same-day delivery a part of everyday life. Amazon launched same-day delivery back in 2014 in six cities, and has since expanded to 28 major metropolitan areas. Late last year, Walmart snapped up Parcel and Target acquired Grand Junction—both aimed at piloting same-day delivery in New York City.  

And it isn’t just these big names. The 2017 Digital Commerce Benchmark Survey by Boston Retail Partners, reported over half of reporting retailers said they already offer same-day delivery.

At the same time, we continue to see the headlines about retailers closing physical locations. Sears and Kmart have shut down 180 stores in 2017. Gap Inc. will close 200 Gap and Banana Republic stores over the next several years. And Starbucks plans to close all 379 Teavana stores.  

Given the increase in same-day delivery and the massive closures of retail stores, you might assume that in-person shopping will soon be obsolete.  And then Amazon throws us all for a loop by purchasing Whole Foods, a large grocery retailer with—you guessed it—large numbers of physical stores.

If Amazon’s acquisition tells us one thing, it’s this: the in-store experience is still a critical piece of the customer experience. If it wasn’t for the importance of physical stores, why else would Amazon be piloting a physical location in New York City?

Don’t get us wrong: same-day delivery is definitely on the rise. Study after study shows that consumers are going from wanting it to expecting it in every industry. But it doesn’t mean that we will all stop shopping in stores. Same-day delivery is becoming a critical piece in the puzzle to deliver a superior omnichannel experience.

So how do we know the in-store experience is still so important?

  • 71% of millennial shoppers (and 57% of baby boomers) are going to not just one, but several brick & mortar stores to seek out deals. This contradicts the idea that millennials eschew physical stores in favor of online shopping.  
  • Though they are traveling to physical stores in droves, millennials also demand same-day delivery more than any other group and they are willing to pay for it.  A survey by Coldwell Banker Commercial Affiliates found that over half of millennials surveyed expect same-day delivery.

Retailers are paying attention and stepping up to meet the growing demands of all shoppers. The 2017 BRP report found that more than half of retailers are prioritizing the consistency of their omnichannel customer experience—though they do acknowledge it will be a difficult undertaking.

Same-day delivery is part of an optimized omnichannel experience.

Retailers aim to offer options to purchase online for standard shipping, in-store pickups, and same-day delivery. And it will provide a whole host of options (like drone delivery and autonomous ground vehicles) that are coming in the future.

If you’re considering adding same-day delivery to your current set of delivery options, it doesn’t mean shutting your physical storefront is next. Also, your customers won’t drastically shift to your web presence.  

Same-day delivery service does provide a convenient delivery option with the potential to bring in new customers and enhance the experience of existing customers.

Want to learn how Dropoff’s same-day delivery service can support your omnichannel customer experience? Contact us for a demo.

 

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