Yesterday, Walgreens said it would offer same-day delivery for ~25,000 items across ~9,000 stores. When new members of the Pfizer fam need a Tylenol and Pedialyte cocktail...
- Walgreens store employees pick and pack orders that customers place through the Walgreens app.
- Then, third-party services including Uber and Act Fast handle last-mile delivery.
One big DoorDash: The list of competing same-day delivery services is getting longer than a CVS receipt.
- Many brands are double-dipping, just like Walgreens, “to balance out base and peak demand and achieve overall optimal costs as volumes scale,” said Sumit Chadha, principal, strategic operations, at Kearney.
Stefanie Kruse, head of digital commerce at Walgreens, told Retail Brew that Walgreens’ service has two customer magnets other pharmacies don’t: It’s drawing inventory from a larger physical footprint, and it’s starting with a lower price ($7.99 delivery with no order minimum).
“We think that this will not only bring new customers to us...but we also think it will drive greater frequency and retention,” Kruse said.
Will it...deliver? Chadha said that two- to four-hour delivery is becoming “table stakes” for many retailers. But Walgreens plays in so many categories—from general merchandise to prescriptions—that competition comes from every direction. — HL
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