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