Target reported strong Q2 performance, with 34% growth in ecommerce sales, nearly 75% of which was attributable to its same-day order fulfillment strategy including buy online pickup in store, curbside pickup and local delivery. The retailer beat expectations on earnings, comp growth and revenue, and raised 2019 guidance.
Target is expanding its free curbside pickup program, Drive Up, ahead of the busy back-to-school season, making it available at 1,550 stores and adding coverage in the Northeast, the company reported in a blog post. Several markets are being added in Massachusetts, Maine, New Hampshire and Rhode Island, with expansion in others.
Moving above and beyond the game-changing Whole Foods acquisition from 2017, Amazon is considering creation of a new hybrid grocery chain that would combine aspects of a pickup and delivery operation with a smaller retail space for shopping fresh items, according to a report in the New York Times.
Israeli firm CommonSense Robotics is building what it says is the world’s first underground automated fulfillment operation for grocery delivery, anticipating a future where facilities like this will occupy abandoned urban spaces above and below ground to fulfill one-hour deliveries for city dwellers.
In the never-ending quest for delivery immediacy, grocer Kroger is testing out 30-minute deliveries in its home market of Cincinnati, cutting the promised time from Amazon’s Prime Now in half. Called Kroger Rush, the service costs $5.95 per order, with the first order free, and requires an app download.
After weeks of concentrating its fire on Amazon, Walmart is now dealing with a flank action from Target as the latter has fully integrated its Shipt same-day delivery service with Target.com. Walmart, for its part, just launched a $98 per year subscription program for same-day grocery delivery, a service that normally costs $9.95 per order.
You just knew Amazon wasn’t going to get shut out of a DOT sanctioned drone delivery pilot program a year ago that let in Google, a FedEx/General Electric/Intel team and Uber, and take it lying down. The ecommerce giant unveiled a bold new delivery system that’s part drone, part aircraft and part robot that uses sensors, AI and ML.
Amazon just turned up the heat in the three-way battle for dominance atop ecommerce sellers, announcing more than 10 million items eligible for its new one-day delivery standard via Prime. This compares with 220,000 items available for free next-day delivery from Walmart, announced in mid-May, and 35,000 from Target ReStock.
While retailers pursue same-day delivery, grocers often complete and ship orders in an hour, while restaurants get even less time. Merchants in food delivery thus have to make instant decisions about the legitimacy of a purchase or risk upsetting their customers. The trick is implementing fraud prevention without ruining the experience.
Firing back at Amazon’s move less than three weeks ago, Walmart is now offering free next-day delivery to customers in Phoenix and Las Vegas, with plans to expand to Southern California within days and 75% of the U.S. population by the end of the year. Walmart’s deal is mostly free: There’s a $35 order value threshold to qualify.