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How the Retail Industry Rethought Delivery in 2017

eMarketer – Drones, augmented reality and algorithms are the new normal for many retailers and logistics companies. Here’s how the retail industry changed the way they deliver goods to consumers this year.

Robots and AR and Algorithms, Oh My

This year, logistics companies have been leveraging different types of technology to help meet demand for fast, cheap and consumer-centric deliveries. DHL is a prime example. Not only has the company been testing robots that roam around warehouses to pick up orders, but it has also used AR and developed in-house tools using machine learning and algorithms that streamline the delivery process. Meanwhile, UPS has been using advanced package scanning and sorting technology to increase processing speed and accuracy, and FedEx has been using sensor technologies that maximize the use of trailer space during the loading process.

Next-Day Delivery Is So 2016

Speed is a big factor in the delivery process. Nowadays, many consumers want the product they just ordered in their hands right away—as in the same day. And retailers are listening. Take Walmart—which recently acquired Parcel, a New York-based same-day and last-mile delivery startup—to provide same-day deliveries of general merchandise as well as fresh and frozen groceries from both Walmart and its Jet.com unit. Then there’s Target, which earlier this year acquired Grand Junction—which offers a marketplace that connects retailers, distributors and third-party logistics providers with a network of more than 700 carriers—to help meet demand for speedy delivery. Overall, more than half of retailers in North America offer same-day delivery, according to a study from BRP (Boston Retail Partners). By comparison, just 16% offered the service in 2016.

Read Full Article: How the Retail Industry Rethought Delivery in 2017

Prime Now chief takes over Amazon food delivery units

Retail Dive – Stephenie Landry, Amazon’s vice president for Prime Now, has been handed responsibility for Amazon Fresh (the company’s grocery delivery service) and Amazon Restaurants (its restaurant delivery service), Re/Code reports.

Amazon is constantly reiterating its own innovations, so a shuffle in some of its delivery operations is hardly a surprise. Landry, who has led Prime Now for more than a decade, is an obvious person to take on other delivery efforts there. Still, it’s an indication of how dynamic the retail delivery market is at the moment, with cumbersome last-mile practices and steep costs yet rising customer expectations.

Target last week announced the acquisition of same-day delivery startup Shipt, months after its purchase of same-day delivery company Grand Junction. In that time, a slew of other retailers have also announced same-day delivery services or expansions of existing same-day services, including Office Depot, Macy’s, Best Buy and Rent the Runway, to name just a few.

Walmart in recent months said it’s testing a program where store workers make last-mile deliveries on their way home from work. The retail giant also expanded Uber delivery of grocery orders.

More than half (51%) of retailers say they now offer same-day delivery, up from 16% last year, and within two years 65% plan to offer it, according to a survey from retail management consulting firm BRP. Third-party delivery, through the likes of Uber or Lyft, has also increased, from 20% of retailers offering that last year to 32% doing so this year, according to that report.

Read Full Article: Prime Now chief takes over Amazon food delivery units

Restaurants need to Double Down on Delivery

Grocerant Guru – Driving top line sales and bottom line profits while consumer’s path to purchase is evolving faster than most legacy restaurant brands has created a quagmire that stagnates customer count growth according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In a recent Digital Commerce Survey from BRP found that same-day delivery has tripled in the past year with more growth to come. Here are some specifics:

  1. Currently, 51 percent of retailers indicate they offer same-day delivery, a sharp jump from 16 percent last year.
  2. Within the next two years, 65 percent plan to offer this service.
  3. Delivery through third-party services, such as Uber or Lyft, also rose from 20 percent last year to 32 percent this year, as retailers try different ways of offering customers the flexibility to shop, purchase and receive goods on their own terms, the survey found.

Jeffrey Neville, vice president at BRP stated “With Amazon offering same-day delivery in some markets, the push is on for retailers to get items delivered to customers as soon as possible,” said. “Autonomous delivery and distribution are the next step with self-driving vehicles soon a reality and a few food delivery start-ups already testing the concept.”

Read Full Article: Restaurants need to Double Down on Delivery

Omnichannel Disconnect: Survey Shows Having a Strategy Doesn’t Always Result in Successful Execution

HFN – Retailers are acknowledging there’s a major gap between their expectations regarding an omnichannel plan and their ability to execute it.

As a new report from Boston Retail Partners (BRP) pointed out, retailers are increasingly focused on transforming their entire merchandising process and “customer-centricity” is a top strategic initiative for 47 percent of the retailers it surveyed.

Consumers “pre-shop” for merchandise online before they ever enter a store, want one-day or even same-day delivery and expect “more” from their shopping experience—more personalization, a larger assortment, a more fulfilling experience and non-stop entertainment, BRP’s 2017 Merchandise Planning Survey noted.

“Customers use technology daily to enable and control their shopping journey,” said Gene Bornac, senior vice president at BRP. “Now it is up to retailers to play catch up with their organization, processes and technology to deliver the right products for the right price in the right place.”

The BRP survey explores the current state of retail planning in an effort to identify and understand retailers’ priorities. The survey found 58 percent of retailers currently have an integrated planning organization across channels and 64 percent of them have integrated their business planning processes across channels.

In addition, 33 percent of retailers have implemented new omnichannel demand planning systems within the past two years. Forty two percent incorporate real-time customer feedback into their in-season planning.

Read full article: Omnichannel Disconnect: Survey Shows Having a Strategy Doesn’t Always Result in Successful Execution

Have Yourself an Omni-Channel Christmas

Material Handling and Logistics – By now you’ve probably had more than your fill of articles and news stories about the holiday shopping-and-shipping season, and admittedly MH&L is guiltier than most when it comes to covering every supply chain angle connected to the holidays, from e-commerce to fulfillment to the latest wrinkle in last-mile delivery. We’ve told you why warehouses are getting bigger; how retailers are rolling out every trick in the omni-channel book to make sure they don’t lose any potential sales; what types of predictive technologies consumer goods companies are using to ensure they’re producing the right amount of stuff (and don’t get stuck with too much inventory on December 26); why robots are appearing in more and more DCs; and how logistics companies are enlisting seemingly any vehicle and any breathing creature to deliver goods on time for Christmas.

As the speeds of ordering, fulfillment and delivery have increased, so too has the speed of impatience. Customers have never liked waiting, of course—no doubt some caveman was disgruntled at how long it took for the first wheel to be delivered—but the extent today to which people resent any kind of delay to their immediate gratification is threatening to cast a Scroogelike pall over the whole holiday season.

So I get that keeping products moving, moving, moving is the order of the day, especially during the time of year when the balance sheets of retailers and consumer products manufacturers are at their most vulnerable make-or-break moments. And it explains why the number of same-day deliveries have tripled over the past year, according to consulting firm BRP, and why the number of deliveries through third-party services like Uber and Lyft now account for fully one-third of all retail deliveries.

Read Full Article: Have Yourself an Omni-Channel Christmas

Same-Day Delivery Triples in Past Year With More Growth to Come

Convenience Store News – Most retailers are responding to consumers’ expectations of quick access to products by offering same-day delivery, according to the 2017 Digital Commerce Survey from retail management consulting firm BRP.

Currently, 51 percent of retailers indicate they offer same-day delivery, a sharp jump from 16 percent last year. Within the next two years, 65 percent plan to offer this service.

Delivery through third-party services, such as Uber or Lyft, also rose from 20 percent last year to 32 percent this year, as retailers try different ways of offering customers the flexibility to shop, purchase and receive goods on their own terms, the survey found.

“With Amazon offering same-day delivery in some markets, the push is on for retailers to get items delivered to customers as soon as possible,” said Jeffrey Neville, vice president at BRP. “Autonomous delivery and distribution are the next step with self-driving vehicles soon a reality and a few food delivery start-ups already testing the concept.”

Consumer behavior and mobile technology are dramatically changing the traditional retail model, according to the report. As Amazon continues to disrupt brick-and-mortar retail through the acquisition of Whole Foods, bankruptcies and store closures are making daily headlines and the phrase “retail apocalypse” is a common topic.

Read full article: Same-Day Delivery Triples in Past Year With More Growth to Come

Walmart's Jet is testing free same-day delivery in NYC

RetailDive – Walmart will be joining its Jet e-commerce division in testing free same-day delivery in the New York City area, a Walmart spokesperson told Retail Dive Friday.

Months after terming free two-day delivery “table stakes” for e-retailers, Walmart U.S. e-commerce chief Marc Lore told attendees at an advertising industry event in New York that Jet offers free same-day delivery in the area now and that Walmart will do so “very soon,” Bloomberg reported. Ravi Jariwala, senior director of public relations at Walmart.com, clarified to Retail Dive that the Jet service is only a test, but has already delivered “many” items to customers in the area.

More than half (51%) of retailers say they now offer same-day delivery, up from 16% last year, and within two years 65% plan to offer it, according to the “2017 Digital Commerce Benchmark Survey” from retail management consulting firm BRP. But only Amazon provides that for free with a minimum order, and only to Prime members.

Read Full Article: Walmart’s Jet is testing free same-day delivery in NYC

65% retailers to offer same day delivery in 2 years: BRP

Fibre2Fashion – About 65 percent of retailers plan to offer same day delivery within the next two years, according to a recent report. Consumers expect quick access to products and most retailers are now responding by offering same day delivery. Currently, 51 per cent of retailers indicate they offer same day delivery, up from 16 per cent last year, says the report.

The report based on the 2017 Digital Commerce Benchmark Survey conducted by Boston, Massachusetts based BRP Consulting says that delivery via a third-party service, such as Uber or Lyft has also increased (from 20 per cent last year to 32 per cent this year) as retailers look at different ways to offer customers the flexibility to shop, purchase and receive their goods on their own terms.

“With Amazon offering same day delivery in some markets, the push is on for retailers to get items delivered to customers as soon as possible,” said Jeffrey Neville, vice president at BRP. “Autonomous delivery and distribution are the next step with self-driving vehicles soon a reality and a few food delivery start-ups already testing the concept.”

Consumer behaviour and mobile technology are dramatically changing the traditional retail model, adds the report. Meanwhile, bankruptcies and store closures make daily headlines, as the phrase ‘retail apocalypse’ becomes the topic of many conversations. These developments dictate retailers’ necessity to adapt to the new customer journey to accommodate the blurred lines of retail and innovative methods of shopping driven by mobile technology, artificial intelligence and rapidly changing fulfilment methods. To succeed, retailers may need to reinvent themselves to create an effective blend of the physical and digital worlds to maintain customer loyalty.

Read Full Article: 65% retailers to offer same day delivery in 2 years: BRP

Amazon Tracker: Strategies And Partnerships Deliver

PYMNTS – In this week’s tracker, Amazon slowly spreads into trickier territory: prescription pharmaceuticals, smart glasses, and shipping alcohol (which is a logistical nightmare). It’s also made progress through the more traditional method of partnerships, though its most recent choices may not be what you’d expect. Finally, not every retailer can be Amazon, but they can all learn something from the eCommerce giant – here’s what.

51 percent of retailers say they offer same-day delivery. One year ago, that percentage was only 16. Boston Retail Partners (BRP) is attributing the shift to Amazon Prime, which, by dominating the retail landscape, is forcing competitors to keep up or give up. Autonomous delivery and distribution may be the next step, BRP predicted.

Retailers would do well to emulate Amazon in some other areas, too, according to BRP: namely, personalized service, ubiquity (omnichannel), and a unified brand experience across those channels.

Read Full Article: Amazon Tracker: Strategies And Partnerships Deliver

51pc of retailers already offer same-day delivery, with more to come

Luxury Daily – Same-day delivery and other fulfillment features will be key to the future of luxury retail. As customers become increasingly reliant on the conveniences of modern technology, more than half of retailers currently implement same-day delivery and more are expected to do so within two years, according to a new report from Boston Retail Partners.

Boston Retail Partners surveyed retailers to gauge their thoughts on the state of digital commerce in 2017. According to the report, quick and autonomous fulfillment is the next step in modernizing the digital retail landscape.

The modern consumer expects a certain level of digital compatibility from the retailers they shop. This extends from basic things such as having a consistent experience across digital and physical channels, to other features such as a robust delivery and tracking service. Same-day delivery is one of the hottest trends in this area, with many retailers planning to implement it in the future or already having it as part of their services.

Read Full Article: 51pc of retailers already offer same-day delivery, with more to come