The National Retail Federation’s Supply Chain 360 conference took place in Cleveland, Ohio last week. According to Kamau Witherspoon, the newly appointed CEO of Shipt, a U.S.-based delivery service owned by Target Corp (who was a keynote speaker in attendance) the three main competitive drivers valued by customers when shopping online are speed, convenience, and price. However, speed is not the primary goal.
“Generation Z puts a much higher premium on convenience. Speed is important, but that doesn’t necessarily mean ultra-fast. The pressure to strive for 15- to 20-minute delivery isn’t coming from (the consumer). They want same-day, but that’s all. They want convenient. They want predictable. In the future, fulfillment and delivery are going to have to get more personal. You’ve got to meet the customer where they are. You need to get them the product they want, how they want it. Research shows customers who work at home or on a hybrid model are more likely to order online.” - Kamau Witherspoon
The online delivery market is set to continue to grow. In a recent survey by the U.S. Chamber of Commerce, 36% of middle-market companies reported having remote employees in Q4 of 2021 who weren’t remote pre-Covid. Just under half of the companies polled said they’ve provided permanent full-time remote options, with another 42% considering the opportunity.