By Ronald D. White
Los Angeles Times
WWR Article Summary (tl;dr) Anthony J. Dukes, professor of marketing at the USC Marshall School of Business says same day shipping was inevtiable “We can have food delivered instantly. We can stream programming instantly. That has given us higher expectations for retail.”
Los Angeles Times
This holiday season, as giant shipping operations once again struggle to handle the e-commerce explosion, some mall retailers have found a surprising way to compete: same-day delivery.
Last week, Target Corp. said it would pay $550 million for Shipt, a fast-growing firm based in Birmingham, Ala., that operates a $99-a-year grocery delivery service. In August, Target said it was buying Grand Junction, a San Francisco transportation technology company that connects retailers to a same-day delivery network of more than 700 drivers.
Best Buy this month expanded same-day delivery to 40 cities using Deliv, a crowd-sourced service based in Menlo Park, Calif.
“Same-day delivery is a service that our guests are asking for more and more often,” Target Chief Operating Officer John Mulligan said in an interview posted to the Minneapolis retailer’s website.
“By acquiring Shipt, we’ll be able to take advantage of our network of stores and Shipt’s technology platform and shopper community to quickly offer same-day delivery to millions of our guests,” Mulligan said.
Traditional retailers are trying to tap what some experts call the instant gratification economy.
“We can get our news instantly,” said Anthony J. Dukes, professor of marketing at the USC Marshall School of Business. “We can have food delivered instantly. We can stream programming instantly. That has given us higher expectations for retail.”
The catalyst may have come in February, when statistics showed that fast-delivery king Amazon.com accounted for more than half of all e-commerce growth in the previous 12 months, said Tushar Patel, chief marketing officer at Kibo, a Dallas-based company that helps merchants more closely tie their online and bricks-and-mortar operations, an effort known as “omnichannel” in the industry.