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Report shows 59pc of retailers invest in in-store fulfilment

SOME 59 per cent of surveyed retailers are investing in in-store fulfilment to mitigate rising delivery costs, reports IHS Media

10 February 2021 - 19:00
SOME 59 per cent of surveyed retailers are investing in in-store fulfilment to mitigate rising delivery costs, reports IHS Media.

Of the 300 retailers surveyed, the 59 per cent are focusing on automation solutions and new fulfilment centers. The fulfilment includes buying online, in-store pickup, and shipping from store programmes.



'While the rate of automation and investment in these types of solutions was modestly growing over the last few years, our report shows clear acceleration of these initiatives in 2020, and our recent discussions with retailers indicate this trend will continue into 2021 and beyond,' said Blue Yonder senior director Jim Hull.



ShipHero CEO Aaron Rubin declared that he expects a continued shift from in-store dependence to an e-commerce focused model.



'As the world has quickly come to expect one- or two-day shipping as the standard, retailers and their fulfilment networks are having to absorb these costs to remain competitive by moving e-commerce products closer to their customers, retailers can cut down shipping times and costs associated with the last mile,' said Mr Hull.



Bed Bath & Beyond began offering curbside pickup options last spring as in-person shopping dropped due to the Covid crisis. The company reported that 36 per cent of its total digital sales were fulfiled by stores while buying online orders represented 16 per cent of digital sales.



'We knew this holiday season would be like no other and we took several steps in advance to help our customers shop safely and with ease, including enhancements to our contactless new store and curbside pickup and same-day delivery service offerings,' said Bed Bath & Beyond CEO Mark Tritton.


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