Kohl's Joins the Trend:
Kohl's partners with Instacart to offer same-day delivery nationwide, boosting its eCommerce capabilities.
This marks a departure from its previous reliance on next-day delivery services.
Instacart benefits from expanding beyond its grocery roots into other retail sectors.
The Big Question: Is Same-Day a Must-Have?
Consumer expectations are shifting, but the feasibility and cost-effectiveness of widespread same-day delivery remain a challenge.
Retailers must weigh potential revenue gains against operational costs and consumer willingness to pay for the service.
Challenges to Overcome:
High Startup Costs: Setting up the infrastructure for same-day delivery can be expensive.
Logistical Complexities: Coordinating with delivery partners and optimizing fulfillment processes is essential.
Consumer Behavior: While speed is important, reliability and consistent service are gaining importance.
State of the Industry:
2022 Survey: Bringg's survey highlighted that many retailers were ill-equipped for widespread same-day delivery, but recognized the need to adapt.
2023 Outlook: McKinsey & Company found that while same-day is a growing niche, it still represents a small portion of the overall delivery market
Key Takeaways:
Customer expectations around delivery speed are evolving, putting pressure on retailers to innovate.
Same-day delivery offers potential benefits, but the costs and logistical hurdles are significant.
Reliability and a variety of delivery options might be more effective customer draws than prioritizing pure speed alone.
As technology and infrastructure improve, same-day delivery could become more commonplace.
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