Adding Same-Day Delivery Boosts Sales for Retailers and Delivery Platforms

Many big-box retailers are integrating same-day delivery platforms to serve consumers faster. Supply chain management professor Martin Dresner examines the strategy with Target’s 2017 merger with Shipt. He looks at how sales are impacted based on the way a retailer offers delivery options — whether all through its own website, or by referring consumers who want same-day delivery to another platform. He finds that directing same-day consumers to a partner platform increases the delivery platform’s sales, especially in markets that have fewer online grocery options. He finds that offering both same-day and standard delivery all in one place boosts the retailer’s online sales.