Retailers are improving their delivery speeds, meaning good news for late holiday shoppers
NEW YORK — Haven’t ordered any of your holiday gifts yet?
Well, you might find solace in discovering some of America’s biggest retailers are working to increase their shipping speeds to please shoppers expecting faster and faster deliveries.
Walmart, Target and Amazon are all-in on the shipping wars, a move retail experts say will help them maintain a competitive edge against low-cost retailers Shein and Temu, which were founded in China. For Walmart and Target, their investments are also aimed at narrowing the gap in delivery speed with Amazon, which has set the standard for fast shipping and remains the king of speed.
Amazon packages have been arriving at the doors of Prime customers even faster this year under the company’s new distribution model, which divides the country into eight regions and predominantly ships items from warehouses in those areas. The idea, according to Amazon, is to get shipments to travel shorter distances with fewer touchpoints, which helps the company not only speed up deliveries but also cuts down on costs.
Company executives have noted faster shipping is also being driven by Amazon’s expansion of same-day delivery, which was first rolled out in 2015 to Prime members who currently pay $139 a year for free two-day shipping and other perks. Same-day delivery sites are smaller warehouses that are located in metro areas and predominantly store the top 100,000 products customers want.
To catch up, Walmart and Target have been pouring money into warehouse upgrades, new facilities or other efforts that they say will also help trim costs.
Walmart uses more than 4,000 of its stores across the country as fulfillment centers and delivery hubs for online orders. In November, the company said it would be adding 40 so-called parcel stations to stores in nine states by the end of the year in an effort to process more goods and get them faster to customers. The nation’s largest retailer said many of the stations — which are like mini post-offices that receive and deliver packages — would be operating during the holiday season.
At the same time, the Bentonville, Arkansas-based company is working to overhaul its warehouses through automation to help speed up delivery to stores and customers.
Meanwhile, Target is aiming to increase its shipping speed by augmenting its own warehouses, called sortation centers, with a $100 million investment announced earlier this year.
Sortation centers receive packages for online orders from 30 to 40 surrounding Target stores that are sorted, batched and routed for delivery to local neighborhoods by a third-party carrier or Shipt, which Target owns.
