2015 Trends to Track: More same-day delivery
Publish Date: December 31, 2014
With the global shopping center industry gearing up for the year ahead, SCT asked experts for their opinions on trends to track in 2015. Here’s the eighth installment in our series:
Retailers like Amazon.com, Macy’s and Target, along with major mall REITs such as General Growth Properties, Macerich and Simon, have spent the past couple of years rolling out same-day delivery services for time-pressed consumers. In the brick-and-mortar space, at least, these strategies typically involve partnerships with tech firms such as Google or Deliv. The latter startup, based in Menlo Park, Calif., now operates in eight major markets. Deliv’s list of mall partners has grown to include General Growth, Macerich, PREIT, Simon, Taubman Centers and Westfield. The latest properties to offer Deliv’s services include PREIT’s new Springfield Town Center, in Washington, D.C., and Taubman’s Beverly Center, in Los Angeles. All told, Deliv now operates at about 30 malls.
The race for speedy delivery shows every sign of continuing into the year ahead. In November, for example, Amazon rolled out same-day delivery in Toronto and Vancouver, having already expanded the service to the U.K. and Germany. As a result, customers who place orders as late as noon can receive their packages before 9 p.m. the same day. But will demand for such services prove strong enough over the long term? According to a March 2013 survey by Boston Consulting Group, people are much more interested in free delivery and lower prices than in the same-day delivery of goods. “Only 9 percent of the 1,500 U.S. consumers surveyed cited same-day delivery as a top factor that would improve their online shopping experience, while 74 percent cited free delivery, and 50 percent cited lower prices,” analysts noted.