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Macy’s, Inc. (NYSE:M) Tests Same-Day Shipping, Bad News For Amazon (AMZN)?

Dallas, Texas 09/09/2014 (ustradevoice) – Macy’s, Inc. (NYSE:M) is testing same-day shipping service. Analysts believe the move is ambitious and could usher in great benefits for the retailer. However, Inc. (NASDAQ:AMZN) and Google Inc (NASDAQ:GOOG) may be on the receiving end as they are also expanding their same-day shipping service.

Macy’s plunge into same-day shipping is an obvious attempt by the retailer to win customers to its side. With consumer spending being soft and store traffic declining, retailers are trying to boost sales through same-day shipping, and that is what Macy’s is striving to achieve. Macy’s is in a partnership with FedEx, eBay and UPS to offer same-day shipping. While the retailer already offers the same, especially from its online portal, expansion of the service means that the retailer believes that there are attractive benefits to gain from same-day shipping service.

Digital Wallet

According to experts, opening up the same-day shipping service makes Macy’s, Inc. (NYSE:M) a formidable competitor to Amazon, which has been trying to lead in the same-day shipping front. Macy’s same-day shipping test has been launched in four markets to try the service. That comes even as the retailer recently launched a digital wallet known as My Wallet. The digital wallet is seen as part of the retailer’s omni-channel approach in trying to compete with Amazon.

The digital wallet offers click-and-collect service, and it has been expanded to 500 stores across the U.S. In addition to helping towards boosting sales, My Wallet also helps the company to monitor online shopping activities. As such, Macy’s, Inc. (NYSE:M) can collect data, analyze it and make adjustments accordingly to enhance customers’ online shopping experience.

Quarterly Performance

Macy’s, Inc. (NYSE:M) is reportedly planning a $1.3 million fulfillment center for Tulsa County, Oklahoma. The fulfillment center is expected to start operations in 2015. The retailer reported 2Q earnings of $0.80 a share, which was better than $0.72 in the same period in the prior year. However, the earnings missed estimates of $0.86 a share.

Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

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