Macy’s, Inc. (M) Will Be A Winner This Thanksgiving With Same Day Delivery


Macy’s, Inc. (NYSE:M) is set to debut same-day delivery in the US this Thanksgiving for online buyers in eight US markets. It’s other store-chain Bloomingdale’s will extend same-day delivery in four cities – Chicago, Los Angeles, San Jose and San Francisco.

Same-day Delivery Part of BOPIS rollout

Macy’s, Inc. (NYSE:M) in fall rolled out BOPIS (Buy Online, pick-up in-store) based on its new operational policy for network stores. The same-delivery service is part of the Macy’s Omni-channel push and priced it on-par with competitors offering same-day delivery services.

On certain categories, Macy’s prices are lower than other players

Macy’s logistics partner in this venture is ‘Deliv,’ a start-up which is crowd funded and has deep collaboration with big mall owners for same-day delivery. Deliv works with mall owners such as Westfield Corp, General Growth Properties (GGP), and Macerich (MAC) as well as Simon.

The online buyers from Macy’s will have to pay $5 as flat costs for orders priced above $99. However, buyers of small orders will have to bear standard shipping costs along with standard $5 charge. A same-day delivery is offered for orders which are placed before 1pm EST from Monday through Saturday. On Sunday’s, orders have to be placed before 11am EST with an option for two-hour delivery window.

Competitors are higher priced

Macy’s, Inc. (NYSE:M) same-day delivery fees is far lower than Inc. (NASDAQ:AMZN)’s services for its Prime members which is priced at $5.99 across 13 cities.

Amazon’s non-Prime members are charged $9.98 for the first order and $0.99 per subsequent merchandise ordered. The deadlines by which the deliveries are accepted are rather harsh, with Chicago’s time-line at 7am for delivery guaranteed before 9pm.

Other key players such as new entrant Google Inc. (NASDAQ:GOOGL) Express charges $4.99 per order with monthly options of $10 per month and $95 per year.

Wal-Mart Stores, Inc. (NYSE:WMT) retail-chain already offers a similar delivery service to its online buyers with the Walmart To Go service and charges at a flat rate of $10 per order, regardless of the size of the order.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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