The Friday Report: December 4th, 2020 - Retail Edition
Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry7-Eleven Sails Ahead with Small Basket Delivery
Did you know that 7-Eleven offers delivery via seven different third-party services including Instacart, Uber Eats, Postmates, DoorDah and Grubhub? 7-Eleven is now able to offer delivery covering 90% of its service area. As 7-Eleven continues to expand, it has added to a rapidly growing network of new convenient options for consumers that focus on small basket shopping. This represents an evolution for 7-Eleven, enabling it to take advantage of the online shopping trend.
Starting in 2017 with a test of 10 stores in its home market Dallas, Texas, the online shopping trend proved popular for 7-Eleven shoppers. The market segment of high frequency, small basket e-commerce sales has proven to be both popular and growth oriented. 7-Eleven reported that it has increased its daily delivery orders fourfold in 2020.
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Walmart Launches Pop Up E-Commerce Distribution Centers
In a new strategy designed to help facilitate fulfillment of e-commerce orders, Walmart began using space in 42 of its regional distribution centers to create “pop up e-commerce distribution centers”. Traditionally, regional distribution centers ship pallets of goods to retail stores rather than individual orders to consumers. The new strategy will enable Walmart to better handle getting goods to both stores and consumers’ homes.
Using the pop-up model, Walmart increases its order fulfillment flexibility, enabling it to grow its capacity during periods of peak volume, scaling up or down to meet need. With the sharp expansion in online shopping during the COVID-19 pandemic, Walmart has worked to develop innovative solutions to shift its existing infrastructure to improve its focus on D2C fulfillment.
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Shopping Service for Local Retailers Helps Even the Playing Field
Postmates recently launched a service enabling app users to shop from local retailers for in-store, curbside pickup or home delivery. The new feature is being tested in the Los Angeles market. Postmates offers an option for app subscribers to receive free delivery. Non-subscribers are charged a delivery fee. The shopping platform is expected to help smaller retailers take advantage of the e-commerce shopping craze.
Originally known for primarily being a food on demand delivery company, Postmates, an Uber-owned company is hoping to provide smaller retailers with an expanded range of product offerings geared towards mobile consumers. During the global COVID-19 pandemic, smaller retailers that lack an online shopping platform have suffered significant losses due to the loss of foot traffic.
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