Target joined fellow big-box retailer Walmart today in posting a first-quarter earnings figure well below expectations as inflationary strain, inventory overstocks and spiraling costs including from labor and fuel continue to challenge the sector. Same-day services were up 8% — but it had grown a whopping 120% in Q1 of 2021.
Sephora continues to expand same-day delivery to customers’ doors, providing service in as little as an hour thanks to a new partnership with delivery service Shipt, which is owned by Target. The major beauty retailer already has a same-day delivery partnership with Instacart, on top of its own Beauty on Demand service.
Walmart is the most popular destination for e-grocery ordering, according to a new survey by Chicory, cited by 36% of respondents, followed by Amazon at 23%, and Instacart a distant third at 10%. Target was cited by just under 10% of respondents, followed by Kroger at 7%, Albertson’s/Safeway (3%), Stop & Shop (2%) and Shipt (1%).
Walmart reported its ecommerce sales in the U.S. increased 8% in the third quarter, and have gained a total of 87% since the same period in 2019, an incredible jump since pre-pandemic days as the retail giant continues to expand digitally, while declaring itself ready for the holidays.
In an effort to make ordering and receiving goods easier for the holidays, Walmart and Target have both announced upgrades to their omnichannel strategies as supply chain woes continue to impact inventory stock levels and consumers worry that products won’t be available.
Amazon has announced a raft of Black Friday-like deals designed to jumpstart the holiday spend quite a bit ahead of time and draft ahead of the rest of the retail pack, capturing early consumer interest and hopefully easing some of the massive network strain later in the season.
Uncertainty around holiday store shopping makes an omnichannel strategy more critical than ever. Retailers need to figure out where to sell, both geographically and through which channels. Based on these imperatives, here are four strategies critical to launching a successful omnichannel campaign this holiday season.
When it comes to the grocery wars, Walmart execs are concerned about the company’s tenuous number one position as well as losing share to fierce competitors, according to brutal self-assessments in a leaked memo and presentation from February obtained by Recode. There are also worries that Instacart is pulling even on e-grocery.
Now that the challenges of the lockdown era are behind, and disruptions have solidified into new consumer behaviors and business practices, what’s next for ecommerce operations? In our annual MCM Outlook report, we talk to retail leaders and industry experts to drill down into how companies are faring and what’s working.
Walmart and Target both announced plans Thursday to improve last-mile fulfillment and delivery from their stores, taking alternate routes via an investment in self-driving car project Cruise, and a new sortation facility powered by acquired technologies from Grand Junction and Deliv, respectively.