Retailers experimenting with same-day delivery of online purchases

Wednesday, October 10, 2012

Several retailers, including Wal-Mart and Target, are experimenting with same-day delivery of online purchases. KSTP reports that the Twin Cities will be one of three metro areas selected for the pilot project. Dave Vang, a professor of finance at the Opus College of business, thinks the move has a lot of potential to broaden the retailers' markets. "It might work out to be an additional market segment they never had before," he noted. "Walmart typically has catered to lower income families. This would be a new group that are probably people who are busy and don't have time to shop."

Vang was not the only member of the UST faculty to weigh in, however, and his colleague Lorman Lundsten had concerns about logistics. "It's very difficult to think of their stores as distribution centers that are going to be efficient, lean, mean profit-making machines," said Lundsten.

Originally published: 10/10/2012, KSTP