Kohl’s is upping its omnichannel game.
The department store chain on Monday said that it had partnered with Silicon Valley start-up Deliv to expand same-day delivery to customers in six more markets starting this fall, including Boston, Los Angeles, Philadelphia, Miami, Northern New Jersey and Brooklyn/Queens. It has been piloting the program in San Francisco, the Bay Area and Chicago.
“Fulfilling shipments from local stores is core to omnichannel and the future of retail. We’re excited to partner with Kohl’s as a part of their broader omnichannel strategy,” Daphne Carmeli, founder and CEO of Deliv, said in a statement.
So, how does it work? Customers in the participating markets can place orders on Kohls.com or via the retailer’s mobile app, select the same-day delivery option and the item will be delivered later that day.
It’s all part of Kohl’s efforts to deliver a seamless experience by turning its physical locations into fulfillment centers. Late last month, the retailer announced several new digital tools, including an omnichannel shopping bag (one virtual cart accessible across all devices when customers log into their Kohl’s account) and the option to pick up online orders in-store.
“With each evolution, we aim to elevate our offerings for an easy, inspiring shopping experience,” said Kevin Mansell, Kohl’s chairman, chief executive officer and president.
Deliv, which crowdsources its drivers for last-mile distribution, also handles same-day delivery for Macy’s, which recently expanded the service from eight markets to 17, including Atlanta, Dallas and Las Vegas. The reason: “We learned that our customers appreciate the additional option of having their purchase brought to their home or office in a matter of hours,” said RB Harrison, chief omnichannel officer at Macy’s Inc.
With 1,164 stores in 49 states, Kohl’s is now hoping it can get leg up on the competition (namely, Amazon) by turning some of its brick-and-mortar locations into local distribution hubs—and it needs all the help it can get.
The retailer reported almost no growth in same-store sales in the most recent quarter, posting a 44 percent slump in net income from $232 million to $130 million.