Will free same-day delivery boost Macy’s online sales?
Macy’s last week announced plans to relaunch same-day delivery in 30 markets for qualifying purchases of $75 or more. In a switch, delivery will be free for a limited time, instead of the standard $8 fee.
Free same-day delivery will launch Oct. 1 and seems timed to maximize holiday shopping. No timeline has been given for when the free option will end.
Orders placed Monday through Saturday by noon local time, or 10 a.m. local time on Sunday, will be delivered the same day through an existing partnership with Deliv.
Macy’s played up the fact that shoppers do not need to be part of a paid subscription program like Amazon Prime to qualify for free deliveries.
In 2014, Macy’s launched same-day delivery with a fee in five markets for a limited selection of products. By 2017, the retailer had expanded same-day delivery to 33 markets, but the overall service underperformed. The new program covers “hundreds of thousands of products.”
Jill Ramsey, Macy’s chief product and digital revenue officer, told attendees at the WWD Digital Forum last week that the offering “was hard to find on the website. It didn’t get a ton of traction.” She added, “Over the last two years, we’ve made significant investments in new technology in our stores and on our website that have given us the ability to better serve our customer’s needs.”
In the second quarter, Macy’s reported its fortieth consecutive quarter of double-digit e-commerce growth.
Macy’s relaunch comes as retailers are pushing the accelerator on speedier deliveries. This past spring, Amazon.com cut its two-day delivery promise to one day for Prime members. Amazon also offers free same-day delivery for over three million items in larger markets for orders over $35.
In May, Walmart began rolling out free next-day delivery for its most popular items with a minimum order requirement of $35. On September 12, Walmart expanded its Delivery Unlimited subscription that provides same-day delivery for groceries. Target offers same-day deliveries on groceries and other items to Shipt subscribers.
Walmart, Target, Macy’s and other retailers are also increasingly promoting free same-day, in-store pickup to consumers.
- Macy’s to Give Same-Day Delivery a Spin – WWD
- Macy’s will test free same-day delivery in select markets for online orders over $75 — here’s where you can get it – Business Insider
- Walmart to Roll Out Delivery Unlimited to More than 1,400 Stores Across the Country – Walmart
- Will same-day delivery flexibility give Target an edge over Amazon and Walmart? – RetailWire
- Did Walmart just one-up Amazon on next day deliveries? – RetailWire
- Should (can) rivals meet the free one-day delivery bar being set by Amazon? – RetailWire
- What will it take for retailers to win the last-mile race for customers? – RetailWire
DISCUSSION QUESTIONS: How appealing is the offer of free same-day delivery for apparel, footwear and other soft lines categories prevalent at department stores? What execution hurdles do you see for Macy’s as it seeks to ramp up same-day delivery?