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Wednesday, November 15, 2023

Target, Amazon -- Same Day Delivery -- November 15, 2023

Locator: 46056INV. 

Link here.

There are so many story lines -- my takeaway -- on this issue -- same day delivery:

focus:

  • Target (grocery / perishable)
  • Amazon (non-perishable)

inventory:

  • Amazon: unlimited (third party scalable)
  • Walmart: vast
  • Target: not so much

gap:

  • the gap between Amazon and Target is huge;
  • advantage: Amazon

future:

  • Amazon: same-day delivery has been accomplished; now growing in different areas
  • Target: same day delivery -- huge expense

business model for same-day delivery:

  • Amazon: robots, drones, automation, less hands-on
  • Target: hands-on intensive; personnel costs are going to surge
  • two years ago: our local Target store had no folks filling online orders
  • now: half-a-dozen minimum-wage employees filling online orders 12 hours/day
  • Amazon: open 24/7
  • Target: open?

bottom line:

  • same-day delivery: imperative; becomes a "commodity" going forward; no longer a discriminator among Amazon, Walmart, Target
    • personnel costs for Target/Walmart will be much greater than Amazon for same-day delivery
  • at the end of the day, it's all about inventory / availability and price

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