“A lot of people like the convenience of [buy online, pickup in-store], they like going into the store, they like the store experience, they like hearing the Christmas music and smelling the scents and everything that’s out there, but they want the ease of ordering online” Layo said.
Many retailers have dedicated areas for online order pick up. Kohl’s offers parking spots for these shoppers, and at Target some orders can be delivered directly to a customer’s car without having to get out.
In addition to an online order pickup counter, Walmart has 680 pickup towers. Currently, Kohl’s has buy online pick up in store lockers in eight stores, and Macy’s has similar lockers in five locations.
Target, Kohl’s and Dick’s Sporting Goods say most online orders for store pick up are ready in an hour. At Old Navy and Macy’s, most orders are ready in two hours, while Walmart says same day pick up items can be ready in as little as four hours.
Buy online pick up in store isn’t without its challenges. Store inventory is used to fulfill same-day orders, which means retail store employees have to find the merchandise, in the right size and style, and that can be difficult when a store is open and consumers are shopping from that same merchandise.
“It’s so expensive,” said Rod Sides, who leads the U.S. retail and distribution practice at Deloitte and serves as vice chairman. The merchandise is handled when it arrives at the store, when it’s put out on the floor and again when it’s pulled to fulfill an online order. “Handling inventory as many as three times to get the sale erodes margin,” he said.
“Inventory management is critical to execute a click and collect in a one-hour or two-hour time window,” Layo said. “You have to be 100 percent confident that you will not disappoint your customer.”
Be the first to comment