In this new video, Mabel McLean speaks about how two of retail’s largest players are competing against each other. Though both have reputations as low-cost players, Amazon is making unprecedented investments in fulfillment. In the past year, it rolled out free two-day shipping for Prime members and same-day shipping in six US cities. In the summer of 2014, the rollout of Prime Pantry enabled Amazon to ship CPG products profitably in bulk.
Meanwhile, Walmart has adopted an omnichannel strategy. Its ship-to-store program allows consumers to get free shipping in exchange for picking up their items at a store. The brand is also piloting Walmart To-Go, a program that allows users to order their groceries online and pick up at the store in a two to three-hour window.
McLean believes an omnichannel strategy is more effective than one focused on online fulfillment. See full video for more.
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