With competition intensifying among physical and online
retailers, product delivery to customers has become a major zone
for combat. This has consequently prompted U.S. mall operators,
Simon Property Group Inc.
The Macerich Company
), and Westfield Group to tie up with same-day delivery company
Deliv. The move follows a similar same-day delivery deal
General Growth Properties, Inc
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The services driven by Deliv will be initially available across
nine malls in Los Angeles, Chicago, San Francisco, San Jose and
Palo Alto and thereafter, more malls will likely be included next
More than 660 malls are being managed by these four mall
operators and two billion shoppers are served a year. As the
online purchases have risen and online players like
) are gaining from it, these mall operators are leveraging on
their nationwide real estate properties - mall and retail outlets
- and using these as distribution centers. And they are using
their infrastructure with Deliv's solution to offer this same-day
delivery service to retailers.
This would help customers to avoid carrying bags from each store.
They would be able to leave their purchased products at the
Deliv-enabled retail outlets and ask for home delivery of the
same at a convenient time the same day. With the stores already
having a presence in the cities and in the vicinities of target
customers, delivery of items can be speedy as well.
This new service would be offered for purchases made at the mall
as well as through the Internet from tenants in the malls that
have this Deliv-powered service, thereby leveraging on the growth
potential of the medium of purchase.
We consider this latest move to be a strategic fit for the mall
operators as the availability of such services would help these
firms to grow in the era of advanced technology in the retail
arena. The move will expectedly boost the shopping experience and
enhance sales volume at the tenant stores, consequently boosting
demand for the mall properties.