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More retailers adding same-day deliveries

Same day delivery
More department chains are using contract drivers to pick up orders from stores and deliver them to customers.

The race for quick deliveries is picking up speed.

Kohl’s announced plans last week to add same-day deliveries in six cities, including Los Angeles and Boston, following recent tests in Chicago and San Francisco.

The department store chain joins Macy’s and other retailers that are hopping on the same-day delivery bandwagon.

USPS also is testing same-day deliveries, part of a broader effort to grow its package service.

“The consumer’s expectation is clearly shifting increasingly to the ‘I want it now’ model, and department stores that are able to oblige will see significant increases in sales,” industry analyst Giulia Prati told Reuters.

The Kohl’s service allows customers to place orders online and receive them later that day. Deliveries are made by Deliv, an Uber-style startup.

Although online sales account for less than 15 percent of revenue for most department stores, shoppers want alternatives to fighting crowds at malls — especially during the holidays, Prati said.

Department stores also want to compete with online-only merchants.

The brick-and-mortar chains “have a natural advantage because their stores can serve as fulfillment hubs,” analyst Yoram Wurmser told Reuters.

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