PYMNTS-MonitorEdge-May-2024

Kohl’s Looks to Outpace Surge in Same Day Delivery With Expanded Self-Pickup

It’s never too early for the holiday shopping music to start with a possible recession in the air, so Kohl’s is joining the fray of in-store pickup innovation with a new service of its own as mammoth competitors Amazon and Walmart slug it out over the same turf.

Supercharging the popular buy online, pickup in-store (BOPIS) trend with digital self-serve tools, the department store chain has rolled out the offering at all 1,100 locations, according to an announcement on Wednesday (Aug. 10).

Orders are meant to be ready for pick up within two hours. Customers receive a notification and proceed through ID verification steps once in the pickup area using a one-time code in the Kohl’s app or self-serve kiosk. The process is visually explained in this view.

Pushing the news cycle out of summer 2022 inflationary doldrums, Kohl’s Chief Technology Officer Siobhán Mc Feeney said, “our teams have been working hard to ensure Kohl’s Self-Pickup service was available for all of our customers ahead of the holiday rush. At Kohl’s, we’re focused on listening to what shoppers want, and using technology to make it as easy as possible for families to get everything they need quickly, and through a simple experience.”

See also: BOPIS Grows Basket Size as Most Consumers Buy Extra Items When Picking-Up In-Store

With delivery times worsening due to labor shortages, steady order volumes and steep gas prices, even Amazon is moving to tap in-store pick up more, as Amazon introduced a BOPIS option in Q4 2021 in what was seen as a broadside to Walmart’s in-store pickup edge.

The eCommerce giant said Amazon Local Selling would help “sellers can quickly and easily expand their multichannel offerings by listing products in Amazon’s store and offering them to local customers in designated areas for in-store pickup on the same day that they place an order. When making an order, customers can select in-store pickup and receive a notification when it is ready that day. Or, they can choose fast local delivery by the seller.”

Battling for BOPIS

BOPIS has turned out to be a very useful arrow in Walmart’s quiver, offering one option eCommerce can’t copy easily. Kohl’s clearly recognizes this as well, with Mc Feeney saying in the announcement, “our customers love the convenience of same-day Buy Online, Pickup In-Store, and now we’re taking the experience to the next level. With some of the busiest months ahead for both customers and associates, we’re excited to offer Self-Pickup at every store for an easier and more efficient omnichannel experience.”

BOPIS is a popular option along with curbside, but free shipping is a major motivator for consumers to sign up for retail membership programs. The PYMNTS study ‘Walmart+ Weekend: Prime Rival Or Trip To The Grocery Store?’ notes that “Only 52% of Walmart+ subscribers said they joined to get this perk, however, and just one-quarter named it the top factor influencing their decision. Free shipping is a much more dominant driver for Amazon, with 84% percent of Prime subscribers indicating this as a reason for membership and 64% citing it as the most important factor.”

See the study: Walmart+ Weekend: Prime Rival Or Trip To The Grocery Store?

 Not ignoring the in-store angle, an Aug. 1 Amazon blog post said Prime members in 10 U.S. metro areas could shop at local retail stores using the Amazon app and website and have their purchases delivered that day. However, the blog stated that “some stores also offer the option to buy online and pick up in store. The service is free for U.S. Prime members who spend $25 or more on qualifying items and $2.99 for members who spend below $25. Additional retailers joining the service in upcoming months include Sur La Table and 100% Pure.”

Read: Amazon Offers Same-Day Delivery From Local Retailers

PYMNTS-MonitorEdge-May-2024