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Retail store Amazon's antidote: Buy online, pick up in store




Offering customers free pickup for digital orders, has become an important part of these dealers' strategy to compete against Amazon's fast and comprehensive home delivery network. Dealers have blanketed the country with acquisition opportunities in recent years, and these investments paid off during the holidays.

Online purchases increased acquisition costs 47% from November 1 to December 19, compared to a year ago, according to data from Adobe Analytics. Adobe said it was the biggest holiday on record for online pickup.

Customers have been quick to embrace online pickups from stores. Analysts say it appeals to customers who want to grab their stuff and go without waiting in checkout lines or interacting with salespeople on the floor.

At Walmart's Investor Day in October, executive consultant Janey Whiteside said the pickup was attractive to both "a pressurized mom" on the way home after picking up the kids at school and a "practical looking baby boomers on their way home from the golf course."

It can also be faster to retrieve mobile or online orders from stores within hours than home delivery delays. It works for last-minute vacation shoppers who need to buy a gift in a hurry. Old Navy even collaborated with Lyft to offer customers free rides to stores for online pickups on Saturday.

"The problem of delivery is that it can take several days," said Georgianna Oliver, the founder of Package Concierge, a company that creates in-store cabinets for retailers. She said that weekly orders have doubled for the company's cabinets since last year.
For retailers, pickup is a better economic model because they can avoid paying expensive shipping costs. The merchants' profit margins have, in recent years, gone from fulfilling electronic orders.

"Realizing the growing cost of e-commerce meets the pressures of many brands to bring it up in the past year," said Steve Dennis, retail consultant and former executive at Sears and Neiman Marcus.

  Buy online increased expenses in the store 47% from November 1[ads1] to December 19, compared to a year ago, according to Adobe Analytics.

Amazon (AMZN), who stores rivals in the room, has just started offering foods taken from all over the food in August. It is only available in 22 cities. It has also been developing new stores like Amazon Go, Amazon Books, and Amazon-4 Star.
Best Buy (BBY) began offering pickup more than a decade ago. Forty percent of Best Buy online orders today are picked up at one of its 1,000 US stores. "Stores are a wonderful resource," says CEO Hubert Joly to CNN Business in a recent interview. "People choose to go to the store because in less than an hour you can pick up things."

Customers often choose Best Buy pickup instead For home delivery because they buy gifts for family members, or they don't want anyone to steal a precious TV from the porch, Joly said. [1965] Walmart (WMT) has raced to add grocery to more than 2000 shops for four years, it has also added pickup towers for general items to 700 stores over the past two years

  Walmart turns to robots and apps in stores

Walmart will soon take over Apple as the third largest online store in the country thanks to customers taking up groceries in stores, according to the report of the research firm eMarketer.
Target (TGT) was late to roll out pickup but has scaled what it calls "run up" to about 1000 stores. Employees take customer orders to their cars.

Target said it was helping the company reduce costs. "Given the cost of last mile shipping, we like the economy of the run-up much better," claims chief executive John Mulligan to analysts in November.

Despite the growth opportunities is not retrieval to operate and presents several barriers to dealers, including security, inventory management and staffing. Dealers have to carry out scams, Oliver said.

Dealers must also make sure that the stores do not run out of online orders, and that workers are not overwhelmed with tobacco handling and convenience stores. For example, Walmart has 25,000 trained personal customers to select produce and meat in stores for online orders.



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