Oct 12 Kohl's Corp said on Monday it
will offer same-day delivery services in six more U.S. cities,
taking a leaf out of Macy's Inc's book, as department
stores aim to make online shopping more appealing ahead of the
Kohl's said it would offer same-day deliveries in Boston,
Brooklyn/Queens, Los Angeles, Miami, Northern New Jersey, and
Philadelphia in the coming weeks. It had been testing the
service in San Francisco, the Bay Area and Chicago.
The company said it had tied up with Deliv, an Uber-like
startup that contracts drivers to pick up ordered items from
stores and malls and deliver them to customers.
Deliv also handles Macy's same-day delivery across the 17
cities the retailer offers the service.
Department stores are investing aggressively to boost
e-commerce sales through initiatives such as 'order online and
pick up in store' as they try to compete with online-only
rivals, the biggest of which is Amazon.com Inc.
"Amazon is trying to gain a new edge via same-day delivery
in select markets, but department stores have a natural
advantage because their stores can serve as fulfillment hubs,"
eMarketer's retail analyst Yoram Wurmser said.
E-commerce sales account for less than 15 percent of revenue
for most department stores, Giulia Prati, senior research
analyst at L2 Inc, said, citing an eMarketer report.
But Prati expects shoppers are likely to use in-store pickup
and online fulfillment options as an alternative to facing
crowds at a store in the run up to the holidays.
E-commerce sales are expected to increase 13.9 percent in
November and December, which includes the holiday season running
from Thanksgiving through Christmas, according to an eMarketer
report from August. Overall sales are expected to increase 5.6
percent in the same period.
"The consumer's expectation is clearly shifting increasingly
to the "I want it now" model, and department stores that are
able to oblige will see significant increases in sales," Prati
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by