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Amazon antidote for retail: buy online, pick up at the store



Offering free digital pick-up orders to customers has become an important part of the strategy of these retailers to compete against Amazon's fast and extensive supply network. Retailers have covered the country with business pick-up options in recent years, and these investments have paid off during the holidays.

Buy online, spending on store pickup from November 1 through December 19 increased 47% year-over-year from Adobe Analytics. Adobe said it was the biggest holiday registered for online pickups.

Customers have quickly adopted online store pickups. Analysts say it appeals to buyers who want to grab their belongings and leave without waiting at cash registers or interacting with salespeople on the floor.

On the occasion of the Walmart Investors' Day in October, Chief Customer Officer Janey Whiteside said picking was of interest to both a "time press mother" and home travel when she picked up her children at school and a "convenience meal". Search Baby Boomer "on the way home from the golf course.

Picking up mobile or online orders in stores in hours can also be faster than waiting for days to deliver home. It works for last minute holiday buyers who need to quickly buy a gift. Old Navy even partnered with Lyft to offer customers free rides for online pickups last Saturday.

"The problem with delivery is that it can take several days," said Georgianna Oliver, Founder of Package Concierge, a company the company founds in-store lockers for retailers, said the weekly orders for its company's lockers have doubled since last year.
For retailers, picking up is a better business model They can avoid the payment of expensive shipping fees.The profit margins of retailers have in recent years by the fulfillment of n online orders worsened.

"Realizing the rising costs of e-commerce has led many brands to increase sales over the past year," said Steve Dennis, a retail consultant and former executive consultant to Sears and Neiman Marcus.

  Online Purchase: Expenditure for pickup at the store increased year-on-year by 47% compared to the previous year (Adobe Analytics).

Amazon AMZN), which is lagging its rivals in the room and has just begun, will offer food pick-up from Whole Foods in August. It is only available in 22 cities. It has also built new stores like Amazon Go, Amazon Books and Amazon 4 Star.
Best Buy (BBY) has been offering pickup for more than a decade. Forty percent of Best Buy online orders are picked up today at one of the 1,000 US stores. "Business is a wonderful asset," said CEO Hubert Joly in a recent interview with CNN Business. "People are choosing to go to the store because they can pick up their stuff in less than an hour."

Customers often choose to pick Best Buy instead of delivery home because they buy or not buy gifts for family members. Joly said nobody wants to steal an expensive TV, Joly said.

Walmart (WMT) has begun to provide grocery shopping in more than 2,000 stores in four years. Over the past two years, 700 stores have been added general purpose pick-up towers. By the end of the year, it will be able to reach 70% of the US population by pickup.
  Walmart turns to robots and apps in stores

Walmart becomes Apple's third largest online retailer in the country soon overtake as customers pick up groceries in stores, research firm eMarketer reports.
Target (TGT) The pickup came out late, but has scaled what it calls "drive-up" to around 1,000 stores. Employees bring the orders of the customers into their car.

Target said it helped the company cut costs. "Given the cost of the last mile, drive-up economics are much better," said John Mulligan, Target's Chief Operating Officer, to analysts in November.

Despite the growth opportunities picking up is not easy to operate and presents several barriers to retail, including security, inventory control and staffing. Retailers need to implement procedures that prevent fraud, said Oliver.

Retailers must also ensure that online orders do not run out of stock and that employees are not overwhelmed with double-picks and on-going business. Walmart, for example, has 25,000 trained personal shoppers who select products and meats when ordering online at stores.


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