Bed Bath and Beyond offers same-day delivery to attract holiday shoppers

Bed Bath and Beyond will provide same-day delivery starting on Sept. 29, anticipating the holiday rush and increased demand for online shopping. 

The home goods retailer has partnered with grocery delivery platform Instacart and Shipt, which is owned by retailer Target and fulfills orders for stores such as Kroger and Costco. 

Stores across 48 states will offer the service to customers with specific zip codes. The option will be available for a flat fee of $4.99 for orders over $39.99. Current Shipt customers will continue to receive free, same-day delivery on orders over $35 when they shop directly through the platform. 

“Same Day Delivery follows the successful introduction earlier this year of Buy-Online-Pickup-In-Store (BOPIS) and contactless Curbside Pickup, and will enable customers to shop their favorite products online and have them delivered to their doorstep within hours of purchase,” read a Bed Bath and Beyond press release.

Offering same-day delivery could be a last-ditch effort for the retailer to bounce back after being forced to close over 200 stores as quarterly sales tumbled in July. 

The company reported $1.3 billion in sales compared to $2.5 billion in the previous year, a 49 percent decrease. However, the company noted that it narrowed its losses in the previous year from $371 million to $302 million.

Some, like the Wall Street Journal, have speculated that the retailer’s actions in recent years, most notably disagreements among past company executives, places it at a disadvantage to retailers like Amazon. 

Others have taken note of Bed Bath and Beyond’s competitive advantage in the form of low prices. In fact, according to Barron’s, after applying membership discounts and coupons, Bed Bath and Beyond’s prices were seven percent lower than Amazon. 

Bed Bath and Beyond’s recent change boosts their efforts to remain competitive as other companies expand their same-day delivery options. Amazon has promised customers in certain states that they can fulfill orders in less than five hours. Meanwhile, competitor Walmart is also working with Instacart. Target has been delivering goods, including groceries, to its customers via Shipt ever since acquiring the company in 2017

“The important thing make sure that we get this in place before the holidays,” said Bed Bath and Beyond Chief Digital Officer Rafeh Masood, to CNBC. “It’s another way for customers to shop us when safety is top of mind.” 

Retailers experimented for years with online shopping models similar to Amazon, allowing customers to readily turn to their favorite brands as the coronavirus made shopping from home the safest option. 

In addition to online shopping, companies have made drastic innovations in the home delivery space ranging from Walmart entering the home grocery delivery service in 2018 to Amazon experimenting with delivery drones and Walmart using drones to deliver coronavirus tests earlier this month.  

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