SAN FRANCISCO Aug 3 Macy's Inc said on
Monday the department store chain will expand same day delivery
services to nine cities and metropolitan areas this month,
pushing into an aggressive field dominated by e-commerce giant
Macy's, the nation's largest department store chain, said it
will now offer same day delivery to customers in 17 markets
including Atlanta, Boston and Las Vegas using Deliv, an
Uber-like startup that uses a fleet of contract drivers to pick
up online orders from stores and malls. The company also said
its high-end Bloomingdale's chain will expand fast delivery.
"When we piloted same-day delivery in eight markets
initially last fall, we learned that our customers appreciate
the additional option of having their purchase brought to their
home or office in a matter of hours," said R. B. Harrison, the
chief omnichannel officer at Macy's in an emailed statement. The
retailer did not disclose how many items it will make available
for fast delivery.
Macy's expansion comes as the "last mile" - the final
portion of a package's journey that takes it from a retailer's
warehouse or store to the customer's front door - quickly turns
into a new battleground for companies trying to increase online
orders. But analysts and logistic experts warn that offering
faster delivery comes at a significant cost to retailers.
Amazon, which revolutionized retail by offering faster and
increasingly free deliveries for millions of online orders,
provides same day delivery in 14 metro areas across the country.
The online retailer is also pushing to expand one-hour and
two-hour deliveries for Amazon Prime members.
Brick and mortar retailers like Macy's have one possible
advantage over Amazon in that it has nearly 900 stores in the
U.S. to source products for delivery - meaning the packages
often have less distance to travel - against 50 fulfilment
centers and smaller distribution facilities run by Amazon.
LaserShip, an Amazon contractor based in Virginia, announced
it would expand e-commerce delivery to five new areas including
Michigan and Kentucky last week, citing increasing demand for
same day shipping options for online shoppers.
"Speed is continuing to be the driving force and what
everyone wants is fast and free shipping," said Josh Dinneen, a
senior vice president for LaserShip, which specializes in last
mile deliveries on the East Coast.
(Reporting by Mari Saito; Editing by Bernard Orr)