Macy’s Plans to Expand Click-and-Collect Service, Launch Same-Day Delivery

Source: Macy's

Source: Macy’s

Macy’s (NYSE:M) just launched its popular click-and-collect service last fall, but now the department store chain is already making plans to update its in-store pick-up program. According to Fierce Retail, the New York-based chain now offers its click-and-collect service at 500 Macy’s stores and thirty-six Bloomingdale’s stores, and it is investing in new technology that it hopes will help it accelerate its omnichannel capabilities and expand that service to 675 stores by the end of spring.

Macy’s rolled out its in-store pick-up program this past fall after the company recognized the changing landscape of the retail industry, and noted that a click-and-collect service was critical to its survival, especially in the face of competition provided by Amazon.com (NASDAQ:AMZN). Click-and-collect services now account for a significant portion of online shopping — in 2012, the figure stood at 40 percent, and it has only risen since then. So far, the program seems to be going over well with Macy’s customers, hence the push to expand the service even more, highlighted by Macy’s CEO Terry Lundgren on Thursday. But it is also important that Macy’s bolsters its online services so they can adequately support the uptick in online shopping, and that’s where new investments come in.

In addition to its focus on the in-store pick-up program, Macy’s is also preparing to invest in more technologies to advance its omnichannel capabilities. The retailer now understands that an omnichannel strategy will help Macy’s determine what it should stock in inventory, online and in stores. Fierce Markets explained that Macy’s leverages its online inventory to offer extended sizes, and then considers offering the same sizes in-stores if the item performs well online.

Those are not the only new options the retailer is exploring. It also has one more weapon up its sleeve to compete with Amazon’s popular Prime program: same-day deliveries. Yep, Macy’s wants to jump on the bandwagon and get your order to you the same day you went through with your transaction. It may be tricky, but according to Fierce Retail, the company has already begun a pilot of same-day service with eBay (NASDAQ:EBAY), UPS (NYSE:UPS), and FedEx (NYSE:FDX), so a customer’s dream might actually become a reality soon.

Macy’s executives are also now ensuring that all of its store formats are up to snuff. You know, just in case anyone wants to shop in the brick-and-mortar store rather than online. Macy’s is all about the in-store orders, and Fierce Retail reports that it is planning on rolling out new store formats in the coming months. Its Brooklyn store is especially expected to get a facelift, and so are its other locations in urban neighborhoods around the country.

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