Walmart and Target are implementing measures to defend themselves against Amazon , the great giant of electronic commerce.
Last year they had already taken the first blow by increasing the wages of their workers, remodeling their stores and even lowering their prices. However, today the battlefield is in the delivery times.
Both companies have optimized their messaging services, overtaking their competitor so that while Amazon offers delivery service for the next day, Walmart and Target are already doing it on the day of purchase.
The implementation of this strategy has encouraged a rebound in the profits of both companies in recent quarters thanks to the increase in online sales and in branches.
According to some analysts, the move has changed the game in the retail industry and has allowed them to pair with Amazon.
Analyst John Zolidis told Up Everything why he believes investors would be making a mistake selling Walmart and Target stock at this time.
“It ‘s tempting to think that Amazon, investing USD 800 million to move its offer Prime shipping 2 days delivery 1 day, would pressure for large retailers. However, this move is not a surprise. We spoke with e l CEO of Walmart , Doug McMillon on this in October last year. we said that delivery on the same day and no delivery in 1 day , would be the real battlefield , “he said.
The error of selling at this moment results from the current implementation of the messaging services and the merger that has occurred from the sale in line with the traditional one.
As explained by Forbes , the union has provided an important advantage to Walmart and Target because both have the product stored at a short distance from the vast majority of the population of the United States . In this regard, the fact that there is virtually no neighborhood in the country that does not have a Walmart is key.
This chain of department stores is also installing self-service collection areas throughout its stores. For its part, Target is offering similar services and installing dedicated counters so customers can grab items more conveniently on the way home or after picking up children from school.
The dynamics reveals that local commerce has complemented online commerce, as buyers now place orders to pick up the goods in their nearest store in order to save shipping costs and maximize delivery times.
For its part, Amazon reported this week that it will invest USD 800 million in the current quarter to reduce delivery times for major customers to one day instead of two , in order to revive its main business of e-commerce and address the competition.
The announcement came after the digital retailer reported Thursday that first-quarter earnings exceeded analysts’ estimates , demonstrating that the company’s focus on cloud computing, advertising and other high-margin businesses. continues to bear fruit.
Fey Donahan born and raised in NYC. She has written for Billboard, MSNBC and Passport Magazine. In regards to academics, Fey earned her BBA from NYU. Fey covers business and economy stories here at Press Release Forum.