Simon Property, Macerich Tie-Up with Deliv - Analyst Blog
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
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 year.
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 Amazon.com Inc. ( AMZN ) 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.
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