Old Navy Adds Same-Day Holiday Delivery to Compete with the Big 3

Old Navy is partnering with Postmates to provide same-day delivery in 4,000 U.S. markets as it competes with Amazon, Walmart and Target for the holiday retail joy of robust sales driven by aggressive delivery fulfillment.

Delivery will be free from Dec. 21-23 as an incentive for last-minute consumers to choose holiday gifts from the casual clothing brand. Outside of that window, the cost for same-day delivery will be $8.99 per order, according to CNBC.

Same-day delivery will extend to the end of January, while Old Navy and Postmates are discussing longer-term options.

“Partnering with Postmates to provide same-day, on-demand delivery creates an even deeper convenience proposition during the bustling holiday shopping season,” Old Navy Global Chief Marketing Officer Jamie Gersch said in a statement.

Erik Morton, SVP of product and strategy at CommerceHub, a distributed commerce network for retailers and brands, said the move by Old Navy signals the delivery wars “are far from over.”

“Amazon, Walmart, Target and more have begun offering same-day delivery to ensure their customers can get what they want as soon as possible, and they’re spending a lot of money doing so,” Morton said. “Retailers will continue to try to best each other when looking to provide the most convenient experience for customers during this season.”

Those that can provide fast shipping, BOPIS/BORIS and accurate delivery promises, “are really at an advantage when it comes to meeting consumer expectations, which leads to increased brand loyalty and more sales,” Morton added.

Old Navy, which first introduced buy online pickup in store (BOPIS) in the summer of 2018, is part of the Gap Inc. empire. This past spring, Gap announced plans to split off the more successful Old Navy as a new publicly traded entity financially independent of the other brands in the stable not doing as well: Gap, Athleta, Banana Republic, Intermix and Hill City.

The new company comprised of rolled-up brands has annual sales of about $9 billion, compared to $8 billion for Old Navy by itself. Gap said this will enable each company to maximize focus and flexibility, align investments and incentives to meet business needs and optimize cost structure.

CNBC said Gap’s spinoff of Old Navy is expected to be completed by mid-2020.

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