Online retailers are teaming up with brick-and-mortar merchants to make it easier for consumers to retrieve their eCommerce purchases — and potentially generate foot traffic for physical stores in the process. Amazon, in one case, is working with Rite Aid to let consumers pick up packages from the online merchant at over 1,500 of the pharmacy chain’s locations.
Rite Aid could benefit from the foot traffic and sales that come along with a flow of customers, while Amazon could tap into a nationwide system for deliveries. With the offering, shoppers who live close to stores that are eligible for the program will be able to see an option for in-store pickup at the time of checkout and payment on Amazon. At the stores, workers will take care of orders at counters that have the branding of Amazon. Selections numbering in the “tens of millions” are said to be offered via the option such as appliances, clothing and other top-selling items, according to The Wall Street Journal.
Jocelyn Konrad, a Rite Aid executive, said per the paper that the retailer foresees the program will create “a stronger customer experience for new and existing customers and drive increased foot traffic to Rite Aid.” And, while the pickup service is said to come at no cost to consumers, they will not have the ability to make returns at the locations. Amazon is said to bring the option to 100 stores with the Rite Aid effort at first and is intending to bring other retailers into the program.
Amazon Hub Director Patrick Supanc said, according to the report, “We designed this program to be used by partners that are large and small.” Supanc also noted, “You’ll see this network continue to expand.” (Amazon Hub, according to the news outlet, encompasses the locker and counter programs.)
The eCommerce retailer is also said to have arrangements with Best Buy and Kohl’s. And Stein Mart announced earlier this year that it planned to roll out Amazon Hub Lockers at locations in 28 states.
Stein Mart Chief Executive Officer Hunt Hawkins said in a May announcement about Amazon’s effort with the comapny, “We are thrilled to offer this innovative delivery experience to Amazon customers while introducing new shoppers to Stein Mart.” Hawkins continued, “Customer service and convenience are top priorities at Stein Mart, and the ability to give both to Amazon customers was a big factor in our decision to introduce this program.”
From Stein Mart to Rite Aid, brick-and-mortar retailers are joining forces with Amazon through efforts that could bring consumers into their stores while offering convenient pick-up options for customers of eCommerce websites.
In Other Brick-And-Mortar News
Sam’s Club has announced that some of its shoppers using Instacart can now receive same-day delivery of alcohol. The service is reportedly available in over 200 locations in certain markets, with plans to expand to additional locations in the months to come. The delivery options let shoppers receive any of the hundreds of Sam’s Club’s alcohol options – encompassing Member’s Mark Asolo-Prosecco, Member’s Mark Sangria, and Member’s Mark Moscato D’Asti – in addition to offerings such as Modelo Especial, Kendall Jackson Chardonnay, and Tito’s Handmade Vodka.
However, shoppers who place alcohol orders through Instacart must be 21 or older and are required to enter their dates of birth at checkout. They also have to present a valid government ID at the time of delivery. Racquel Harris, the company’s vice president, adult beverage, said in a press release, “Sam’s Club is focused on offering quality products, unexpected finds and better customer experiences.” Harris continued, “Now you can select the perfect bottle of wine to complement your dinner or stock up on your favorite beer or spirits for the big game with the convenience of delivery.”
In other news, defunct retailer Toys R Us could be making a comeback ahead of this year’s holiday season: The remnant of the company will reportedly open an eCommerce website along with approximately six U.S. stores per a report that cited unnamed sources. Tru Kids Inc. CEO Richard Barry has been putting forward a vision for toymakers to bring the chain back per reported sources.
The locations could be about a third of the size of the big-box stores that closed last year at roughly 10,000 square feet. It was also noted that the locations would reportedly offer more experiences like play areas. And the startup costs could be kept lower through a model that has toymakers ship goods but not receive payment until shoppers purchase the products. A Tru Kids spokesperson said, according to the report, that the firm was not ready to offer public details on its strategy in the U.S.
On another note, some of the largest operators of restaurants are renegotiating with the firms that bring takeout to consumers with an online food delivery service market that is becoming more crowded. Restaurants were once fast to sign up for delivery platforms, but they are now looking for lower rates as competition in the space is heating up.
To keep tabs on the latest retail trends, check next week’s Retail Pulse.
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