The big-box retailers like Walmart and Target will try to win on Amazon Prime Day by fulfilling online orders quickly through curbside and in-store pickup.
Buy online, pick up in store options — such as curbside and in-store pickup — have gained popularity during the coronavirus pandemic as a safe, convenient alternative to browsing store aisles.
The services could be key differentiators this week and throughout the holidays as big-box retailers try to divert dollars from Amazon.Target has been vocal about the huge gains in its same-day services during the pandemic. Its curbside pickup service, called Drive Up, surged by more than 700% in the second quarter and its in-store pickup option, Order Pickup, grew more than 60%.
On an earnings conference call, Target Chief Operating Officer John Mulligan noted the "stickiness" of the service. After a customer tries Drive Up for the first time, he said, the company sees a nearly 30% increase in the shopper's overall spending — both online and in stores. Curbside pickup has other business advantages. By eliminating the need to ship a package from a store or warehouse to customers, each online transaction becomes more profitableFor example, Target has said that when it fulfills an order by Drive Up or Order Pickup, it's 90% cheaper than shipping from a warehouse.
Kathy Gramling, consumer industry markets leader for EY in the Americas, said the appeal of curbside pickup will evaporate if customers endure long waits or cope with other customer service headaches.
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