Can retailers “deliver the goods” and still make a profit? That is the question many are asking, especially when it comes to that last mile to the customer’s home.
Retailers have been working to make it easy and seamless for the customer to buy anytime, anywhere and from any device. But how do they deliver those goods quickly and efficiently without the risk of kissing their profits good-bye? In a session called "The Last Mile" at the 2018 ICSC New York Deal Making, on Dec. 5, Target's vice president of logistics strategy will discuss delivery in the modern retail environment and its impact on the company's stores, customers and supply chain.
Traditional retailers have created engaging websites. But the test is how well the retailer is executing on delivery, says Benjamin Conwell, a Cushman & Wakefield senior managing director who heads the e-commerce and electronic fulfillment specialty practice group. “Distribution is most definitely at the forefront for any retailer who has designs on being around two years from now,” Conwell said.
Companies have proved that they can deliver goods to the customer’s doorstep, but most are doing so at great cost, says Melina Cordero, CBRE’s head of retail research for the Americas. “They have to figure out better ways to organize their logistics and supply-chain and delivery systems in order to fulfill omni-channel without eroding all of their profits.”
On the plus side, retailers do have something that Amazon.com and other e-commerce companies do not: a ready-made physical network that puts them within easy reach of the customer. But all of this will add to a variety of other responsibilities for stores, including brand promotion, click-and-collect and online-purchased merchandise-return operations, experts say.
Target, for its part, has acquired third-party delivery service Shipt to allow it to offer same-day delivery to online shoppers. At the 2018 ICSC New York Deal Making, Target’s vice president of logistics strategy Sundip Naik will discuss the retailer's last-mile challenges and plans for the 2018 holiday delivery season.
