Shopatron Slideshow

6 Compelling Cases for Ship-From-Store

The Future of Brick-and-Mortar Looks Dim

US retailers received only 1/3 of the holiday foot traffic they did 3 years ago

1/3

6 Compelling Cases for Ship-From-Store

The Future of Brick-and-Mortar Looks Dim

In the last 4 years, brick-and-mortar retail sales shrank by $30 billion

$30B

6 Compelling Cases for Ship-From-Store

The Future of Brick-and-Mortar Looks Dim

➤ There hasn’t been an indoor mall built since 1996

➤ Increased popularity of “showrooming” is cutting into traditional retail sales

➤ Big name retailers are rapidly closing physical storefronts

6 Compelling Cases for Ship-From-Store

eCommerce Continues to Thrive

eCommerce is approaching $300 billion in US sales and is the only trillion-dollar industry showing double-digit growth

6 Compelling Cases for Ship-From-Store

$300,000,000,000+

eCommerce Continues to Thrive

Brands and retailers need to find a balance between the physical and digital

shopping experience to survive. But how?

6 Compelling Cases for Ship-From-Store

Why Ship-from-Store is the Answer

➤ Ship-from-store programs allow brands and retailers to leverage the benefits of having both a physical and online presence.

➤ Many big names champion ship-from-store and many big companies are adopting ship-from-store programs.

6 Compelling Cases for Ship-From-Store

66 Compelling Casesfor Ship-from-Store

6 Compelling Cases for Ship-From-Store

1“Retailers that succeed in finding creative ways to deliver products…will thrive the most…the single most important things are endless aisle followed by ship-from-store.” - Sucharita Mulpuru, Senior Analyst, Forrester Research

2014 Will be Tough on Traditional Retail

2Dick’s Embraces Ship-from-Store…

“We look at it as having over 500 distribution centers across the country that can get product to customers quickly and inexpensively.”

- Edward Stack, CEO, Dick’s Sporting Goods

2…and Reaps the RewardsHaving every Dick’s store participate in their ship-from-store program, “has many benefits: it allows us to connect online customers with any inventory in any store; it improves inventory utilization; it lowers shipping costs; and improves speed to our customer, allowing us to now compete on speed. 75% of our orders are shipped to a customer within a 15-mile range of a Dick’s store.”

- Michele Willoughby, EVP eCommerce and Supply Chain, Dick’s Sporting Goods

3Macy’s Ditches Distribution Centers“We’re no longer going to need fulfillment centers anymore,” said Macy’s CEO Terry Lundgren, according to RIS. “We’ve got 800 of them, and they’re called Macy’s stores.”

4Best Buy Empowers Over 400 Locations“With the rollout of ship-from-store, we are looking at our stores strategically in relation to our longer-term supply chain strategy. We strive to deliver inventory to our customer when and where they wan to receive it.” - Hubert Joly, CEO, Best Buy

5Best Buy Wins With Ship-from-Store“It’s not just that they’ve implemented ship-from-store – they’re doing it better than everyone else…Other big-box retailers have rolled out ship-from-store, but Best Buy seems to have created a blueprint that is having a tremendous impact on its business.”

- Kevon Hills, VP of Research, Stella Research

6Wal-Mart Steps Up Online Delivery“Ship-from-Store will enable us to do same-day and next-day delivery at a low cost to us and offer convenient and expedient delivery to the customer…For 50 years, we’ve been picking from the back of the store and putting items on the shelf…Ship-from-Store is no different, except that you’re putting them into a box.”

- Joel Anderson, President & CEO, Walmart.com

Recap: The Benefits of Ship-From-Store Improve Delivery Speed Reduce Costs in Multiple Ways Increase Inventory Turn Avoid “Out-of-Stock” Items Fewer Markdowns Mutually Beneficial for Brands

and Retailers Compete and Win!

Looking for more eCommerce inspiration?Head over to the Shopatron website for dozens of resources on how to transform your eCommerce strategy.

ecommerce.shopatron.com/resources