The rise of 30-minute delivery has caused major retailers to rethink how they balance fast store-based delivery with reliable in-store experiences.
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Speed and consistency were common themes across multiple retailers’ earnings, from Walmart to Target, and it’s no coincidence that both topics are making waves together.
Consumers are increasingly shopping online, and a small but growing share are choosing delivery options that promise arrival in 30 minutes or less partner and Americas lead of the grocery and retail practice at Kearney. When they do go to the store, they want to find exactly what they expect on the shelf
“What can really ruin that experience for a consumer is if they order something online or they go all the way to the store thinking something’s going to be in stock, and it’s not there,” Black told CX Dive.
The push for consistent experiences is growing amid a backdrop of falling brand loyalty and reduced spending. Ensuring customers can get what they want every time, no matter where or how they shop, is key to keeping them coming back — and retailers that put a greater emphasis on friendly in-store experiences are betting they will stand out from the crowd.
The need for fast, convenient experience was reflected on earnings calls last week, with Walmart emphasizing faster delivery speeds and omnichannel operations. Target highlighted improved delivery windows as well, but it put a greater emphasis on its improved in-stock rates and consistent shopping experience.
“Ultimately, that consistency needs to show up in the experience we create for our guests,” Lisa Roath, EVP and COO at Target, said on that company’s earnings call. “We want every store to deliver on our promise, every interaction with the guest to feel welcoming and helpful, and every product we sell to bring delight.”
Some customers don’t have time to wait
Only a minority of consumers regularly use rapid delivery options, but their expectations for the experience differ significantly from more traditional shoppers.
Fewer than 1 in 5 U.S. consumers regularly use ultra-fast delivery These shoppers are far more likely to make impulse purchases and have significantly less brand loyalty than customers who don’t opt for ultra-fast delivery
The differences come from the kinds of experiences rapid delivery users seek — and for these shoppers, the friction of inconsistency can be an experience killer.
“What we’re seeing from the consumer, particularly younger consumers, is they’re valuing their time as a very precious commodity — in some cases almost as much as their money,” Black said. “And so to be out of stock really is unfulfilling for them and a waste of time. They don’t necessarily want substitutions for items, and it erodes trust.”
Nailing the experience for all shoppers
The growth of ultra-fast delivery doesn’t make the store experience any less important.
Customers putting speed above all else are still a minority, and retailers are evolving their stores to be experience hubs in addition to fulfillment centers
The challenge is balancing the needs of in-store and online shoppers as consistent experience and fulfillment execution are becoming more complicated.
“They’ve been grappling with it for a while, but it’s only getting more complex with things like quick commerce,” Black said. “At the same time, retailers are investing in a lot in things that will attract consumers into the stores.”
One example is Target, which is improving its in-store experience with a more rapidly changing selection of merchandise and better visual merchandising, Black said. This combination can help “get consumers engaged and make it more exciting.”
Walmart is basing its strategy on serving customers across every channel The goal is to offer flexibility and dependability regardless of where or how customers choose to shop
“We’ll watch all the channels,” Furner said on an earnings call. “ We’ll make sure the store experience is great. We’re investing in new stores. We’re investing in remodels and are investing to ensure that the stores are omni-enabled so that they can be supported and provide whatever we need for the e-commerce business.”
Friendly associates are the next frontier
The changing retail landscape is bringing back friendly and helpful associates as a serious CX differentiator.
For the past few years, retailers have locked up products to prevent shrink and minimized staffing The result was customers would need to interrupt associates busy with other tasks, which led to frustration for both parties
Now, retailers are equipping associates with AI tools and investing in additional hours and training to help them better perform their roles This not only helps with fast store-based fulfillment, but ensures more workers are available to assist customers
“I do think that idea of being both operationally efficient and friendly and easy and pleasant to shop is sort of the next evolution that retailers are trying to get right,” Black said.
Target is one of the retailers emphasizing this strategy on its earnings The retailer has made greeting customers a mandated policy, among other changes
Investments in training and technology for associates has helped Target improved reliability and customer satisfaction metrics
“I think when it comes to consistently elevating the experience that our guests have in our existing stores, one of the best ways that we do that is through investing in our team,” Roath said.
