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Office Supply Giant Office Depot Rolls Out Same-day Delivery in Three Markets

Wednesday, August 9, 2017  
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Back-to-school shopping is right around the corner. Office Depot plans to offer same-day delivery service just in time for students and professionals alike.

 

The supply chain giant, which had sales of $11 billion last year, is partnering with Deliv, a crowdsourced, same-day delivery startup, to provide the shopping option. The service will roll out in three markets, including Atlanta and Los Angeles on Aug. 28, and in the Fort Lauderdale/ Miami area Sept. 6.

 

“Retail is undergoing a rapid transformation,” said Kevin Moffitt, senior vice president and chief digital officer at Office Depot said in a statement. “To exceed our customers' increasing expectations, we continue to enhance our omni-channel shopping experience. Adding same-day delivery capabilities to our growing in-store pickup and ship-from-store programs allows us to better leverage our retail locations as distribution hubs, and serve our customers faster and more efficiently.”

 

With Deliv, unlike three-party delivery apps, customers can shop directly at OfficeDepot.com, scheduling same-day delivery at their convenience for items 50 pounds or fewer.

 

“With this business model, Office Depot holds the customer relationship,” said Daphne Carmeli, chief executive officer and founder at Deliv told USA TODAY.

 

In a press release, Office Depot said they plan to waive delivery fees as an introductory offer. Kevin Moffitt, senior vice president  and chief digital officer at Office Depot, said the free delivery will likely not last forever, but the company has not yet determined when they will update delivery fees. Office Depot plans to add the service to an additional 10 markets by the end of the year. 

 

"Same-day delivery is helping to make our stores more effective, a way for us to offer greater value to our customers." Moffitt said in an official statement to USA TODAY. "This is another option for customers who may need something right away, but may not be able to come into the store."

 

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Same-day, or 'last-mile' delivery has become an almost expected staple among consumers with services like Amazon Prime flooding the market, giving customers the decision to shop across a variety of channels, including in-store, online pick-up and delivery.

 

“The battleground for the customer experience has been focused on delivering speed and flexibility for customer fulfillment,” Carmeli said. “Retailers are really battling for the buy button.”

 

Additional options is what retailers need to do to remain competitive in today’s market, Carmeli said. Studies conducted by Deliv, which works with more than 4,000 retailers nationwide in 700 cities, found that 80% of shoppers want the same-day delivery option, while 64% of millennials said they are more likely to make a purchase if same-day delivery is an option.

 

“We see increased basket sizes, increased number of times people order,” Carmeli  said. “What it really provides is additional choice.”

 

Same-day delivery is also attractive to busy consumers because it saves them the hassle of making a trip to the actual store. 

 

"Most people don't favor going to the office supply store as one of their top shopping trips," said Shelley Kohan, vice president of retail consulting at RetailNext, a research company measuring shopping behaviors and in-store analytics of brick-and-mortar retailers. "What Office Depot is doing is giving customers the opportunity to have their time back. They're training the customers to shop seamlessly, teaching them the value of time and convenience." 

 

Pricey delivery fees, however, may deter customers from using the service. The biggest test will be if the supply chain can make a profit off the venture. 

 

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