Store closings abound and fast and free shipping

When Amazon started its prime shipping in 2005 that started a trend in shipping expectations from other retail merchants. 43 percent of those who shop online check out shipping charges and base many times base their purchases on what’s fast and free. The holidays are right around the corner and customers will be looking for the fastest shipping especially those doing last-minute shopping.

Target has cut costs by 40 percent by shipping from stores instead of a distribution center. That was the reason behind the remodeling of at least 400 Targets. Target offers free shipping and in most cases has 2 day shipping.

Etsy sellers have been encouraged to offer free shipping on orders of $35 or more. And those sellers at Etsy who are not completely in line with offering free shipping are encouraged to raise prices on their items to cover the shipping costs.

WalMart has also gotten in on the one to two-day shipping and again found that it is more economical for them to ship from the store instead of a distribution center.

It appears the larger retail stores or chains are getting in on the quick shipping from instore inventory rather than the drop and ship from a distribution center.

Retailers that target the boomer generation and Generation X shoppers are shutting down stores at a staggering pace. Chico’s will close around 90 stores this year and JC Penny will shutter at least 18 plus department stores this year.

Stores like TJ Maxx, Nordstrom Rack, Target, and even WalMart have grown in double-digit sales so far this year. Target has been thrown out there as a trendy place to purchase clothing, especially by WWW. On September the 14, Target had a 20 year celebration of its top of the line couture designer partners they have had over the years whose designs appeared in Target, Isaac Mizrahi, Jason Wu, 3.1 Philip Lim, Lilly Pulitzer, Missoni, Zac Posen, and architect Michael Graves who designed for the home. These are just some of the designers. It has been very successful with a huge percentage of the fashion items gone within the first 48 hours. Some of the Targets have but a few items left especially Isaac Mizrahi items.

WalMart is bringing in Scoop a trendy clothing brand and Macy’s has Backstage as their offline retail place to shop. They report sales increase in the single digit category, indicating they will open free standing Backstage stores.

Consumers are going to shop where they can get the best items possible for the best price. No rocket science here. Older women are buying more online than ever before and find they are comfortable with this shopping experience.

Store closings will abound in the last quarter of 2019 and will continue in 2020.

Courtesy Retail Dive