A Macy's executive says the retailer could overtake Amazon in markets served later this year. Amazon, meanwhile, is expanding its home services business. Fred Katayama reports.
The U.S.' biggest department store chain is turning up the heat in the next big battleground in retail: same-day delivery. And Macy's could even surpass Amazon. A company executive told Reuters Macy's is expanding same-day delivery to several new U.S. markets this summer and could overtake Amazon with more additions later this year. Macy's currently serves eight markets; Amazon serves 14. One big thing Macy's has going for it: it can deliver goods from its 886 stores nationwide while Amazon has 50 fulfillment centers and distribution facilities. So Macy's packages have shorter distances to travel. Macy's is partnering with an Uber-like startup, Deliv, to have contract drivers pick up online orders from Macy's stores. Wedbush Securities analyst Michael Pachter thinks it's unlikely this will help Macy's add new customers, saying, "Overlap of Macy's customers with Amazon's customers is probably pretty high, but overlap of Amazon's with Macy's isn't." Always on the run, Amazon itself is expanding coverage in another arena: local home services. It said Wednesday it has added more services and providers in 15 cities and will add more locations as well.