Walmart in same-day delivery grocery push via Jet.com
Walmart is upping the ante in the grocery delivery wars in one of the nation’s most competitive markets.
“This is a key building block that is part of Jet’s strategy focused on urban centers and will help us build personal relationships with customers while offering them a unique assortment, tailored experience and personal service,” said Simon Belsham, president of Jet.com.
Walmart’s Jet.com division announced it will open a fulfillment center in New York City, in the Bronx, that will support same-day and next-day delivery throughout the city. The center will exclusively house Jet inventory, which includes groceries and everyday essentials.
To support its delivery efforts, Jet is partnering with Parcel, a last-mile delivery start-up Walmart acquired https://www.chainstoreage.com/technology/walmart-ups-same-day-delivery-capabilities-big-apple-acquisition/ last October. It provides customers with live updates via text messages about delivery status.
In offering same-day delivery in New York City, Jet.com will compete with Target, which offers same-day delivery for in-store purchases to part of the city for a fee. Also, Amazon Prime provides same-day grocery delivery in the city.
Jet’s headquarters are in Hoboken, New Jersey. The company said the new center will create hundreds of jobs in the New York area.
Macy’s reportedly suffers a data breach
Cyber-criminals gained access to profiles of Macy’s online customers.
According to a letter mailed to online customers last week, Macy’s detected suspicious login activities on June 11, according to The Cincinnati Business Courier, which cited the Detroit Free Press.
According to the report, a third party obtained customer information, including customers’ user names and passwords, through websites not related to the Macy’s brands. This information was used to gain access to “a small number” of online customers’ accounts, including customers’ full names, addresses, phone numbers, email addresses, birthdays and debit or credit card numbers with expiration dates. The breach took place between April 26 and June 12.
Upon learning about the incident, Macy’s blocked customer accounts that were compromised, and sent a letter to potentially impacted customers. Following a thorough investigation, Macy’s addressed the cause and, as a precaution, implemented additional security measures, the Cincinnati Business Courier revealed.
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U.S. retail CEOs expect M&A activity to drive bullish growth
The nation’s retail chief executives are bullish on growth.
That’s one of the findings of KPMG LLP’s 2018 U.S. CEO Outlook report, in which 83% of CEOs in the consumer and retail industry say they are very confident about the growth prospects of their companies during the next three years. Mergers and acquisitions were cited as the top (38%) growth driver, followed by third-party strategic alliances (23%). M&A activity is expected to transform retailers’ business models faster than organic growth, reduce costs, increase market share and on-board new technologies, according to KPMG.
“Although U.S. CEOs are bullish on the business prospects of their companies, the percentage increase in growth over the next three years may still be moderate,” said Mark Larson, national leader of KPMG’s consumer & retail practice. “Retailers that acquire the right technologies, either through M&A or third-party alliances, and successfully personalize the shopping experience for their customers, may see the highest percentage increases in growth.”
In other findings, nearly all of the executives (98%) see technological disruption as an opportunity rather than a threat. Most (92%) also said they are keeping up with innovation.
When it comes to emerging technologies, 94% of the CEOs expect to see a significant ROI from digital transformation and AI within the next five years. The majority of the executives (88%) said that technological investments made to personalize the customer experience have already delivered the growth benefits expected, but there is more that can be done.
CEOs are also staying mindful of the potential risks that digital technologies pose. The executives named cyber-security and emerging/disruptive technology as the greatest threats to their organizations’ growth (25% each), followed by operational risk (21%). Ninety-percent of the respondents said that protecting customer data is one of the most important responsibilities for their organizations in order to grow.
“Risks such as cyber-security, managing customer data and adoption of new technology can significantly impact retailers’ top-line and long-term growth,” said Duleep Rodrigo, risk consulting industry leader, consumer & retail, KPMG. “Since the various risks in retail are heavily interconnected, rapidly evolving, and impact each retailer in a unique way, companies need to be creative in taking a balanced approach in managing risk and maintaining consumer trust, particularly as it relates to technology.”