So Walmart and Nordstrom are doing physical business that does not sell anything. The two retailers are creating small hubs in major cities and metropolitan areas that allow shoppers to check their online grocery and apparel orders. Through these new locations, they have access to shoppers who want to get things done quickly without having to go to the regular shops with large boxes or wait for delivery home.
Earlier this month, Walmart opened the Walmart Pickup Point, a 40,000 square foot prototype shop outside of Chicago in Lincolnwood, Illinois, to ensure online collection and delivery to customers. Customers drive to designated parking spaces and a Walmart employee loads their trunk with the order.
The interior of the Lincolnwood Locations looks like a Walmart with food and everyday items such as diapers, household cleaners, and pets. However, unlike a traditional Walmart supercenter, customers can not go inside. It is also testing a similar model near its Arkansas headquarters.
The new location "gives busy customers the opportunity to shop how, when and where they want," said store manager Nicole Olson in a press release.
The new Walmart locations are similar to Nordstrom Local, a concept Nordstrom ( JWN ) first introduced in 201
7 in Los Angeles.
Nordstrom Local Turnstiles are smaller than traditional department stores. They offer customers the opportunity to pick up and return and use Nordstrom's conversion and tailoring services. Nordstrom has three local stores in Los Angeles and is scheduled to open its first two in New York City in September.
Walmart and Nordstrom's innovations are the latest examples of how retailers are trying to create distinctive services for the defense of Amazon ( AMZN ) does not carry inventory. Nordstrom has three local stores in Los Angeles and is scheduled to open its first two in New York City in September. "data-src-mini =" // cdn.cnn.com/cnnnext/dam/assets/190726164002-01-nordstrom-walmart-small-169.jpeg "data-src-xsmall =" // cdn.cnn.com /cnnnext/dam/assets/190726164002-01-nordstrom-walmart-medium-plus-169.jpeg "data-src-small =" http://cdn.cnn.com/cnnnext/dam/assets/190726164002-01- nordstrom-walmart-large-169.jpeg "data-src-medium =" // cdn.cnn.com/cnnnext/dam/assets/190726164002-01-nordstrom-walmart-exlarge-169.jpeg "data-src-large = "// cdn.cnn.com/cnnnext/dam/assets/190726164002-01-nordstrom-walmart-super-169.jpeg" data-src-full16x9 = "// cdn.cnn.com/cnnnext/dam/assets /190726164002-01-nordstrom-walmart-full-169.jpeg "data-src-mini1x1 =" // cdn.cnn.com/cnnnext/dam/assets/190726164002-01-nordstrom-walmart-small-11.jpeg " data-demand-load = "not-loaded" data-eq-pts = "mini: 0, xsmall: 221, small: 308, medium: 461, large: 781" src = "data: image / gif; base64, R0lGODlhEAAJAAAAAAP /////// wAAACH5BAEAAAIALAAAAQAAkAAAllI + py + 0Po5yUFQA7 "/>
Buy online, store pickup grows
Retailers have successfully expanded the possibilities of online pickup in their stores in recent years.
Nordstrom offers full-price pick-up at all of its over 100 locations in the US, while Walmart will offer pick-up at more than 3,000 of its stores by the end of 2019.
Walmart Pickup Point and Nordstrom These retailers are trying to exploit the growth of pick-up locally, especially among younger and richer buyers.
More than 15% of US buyers have already tried online pickup, and annual sales will reach $ 35 billion by next year. Cowen analysts estimated in a report.
Roadside pickup is the "natural evolution of the traditional shopping experience in the business," Cowen analysts said in the report.
The pickup appeals to buyers who want to grab their belongings and interact with them without waiting at the cash register or sales representatives, analysts say. The collection of orders from stores can also be done faster than the delivery home.
For retailers, picking up is a better economical model than delivery because they do not have to pay expensive shipping costs. Many retailers' profit margins have dropped in recent years due to investments in their e-commerce supply chains.
Create Customer Engagement
Walmart points out that its hub in Lincolnwood extends customer acquisition capabilities, an area where it can not fit into one of its 17,000-square-foot jumbo stores.
For Nordstrom, customers who visit local stores spend on average two and a half times more than regular customers, according to the company. Customers are typically younger and more frequent Nordstrom buyers than those who do not shop at Local.
"Expanding our local market strategy in New York City is a cornerstone of improving service to our customers." Jamie Nordstrom, president of the stores, said in May.