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Will Same-Day Delivery Save The Mall?

Written by Tom Ryan

General Growth Properties (GGP), the second-largest mall operator in the country, is introducing same-day delivery of both online and in-store purchases. The service is designed to meet the "evolving consumer demands through omni-channel retailing" while also offering additional ease and convenience in how its customers receive goods.

Same-day delivery will initially be offered at four properties:

  • Stonestown Galleria in San Francisco;
  • Eastridge in San Jose;
  • Glendale Galleria in Los Angeles;
  • and Oakbrook Center in Chicago.

Shoppers will be able to purchase online from participating retailers and have those purchases delivered the same day. For brick & mortar stores, adding the offering is expected to provide a tool to offset the same-day delivery services being rolled out by Amazon, Google and eBay.

Shoppers at the mall will also gain the ability to have their purchases inside the mall delivered directly to their homes or preferred locations on the same day. Mall-shopper delivery is expected to particularly appeal to those who use public transportation or those shopping with friends who don't want to be tied down with bags. Purchases across various stores can be aggregated before delivery.

The price of same-day delivery in both cases will be the same or less than standard shipping.

The service is being added through a partnership with Deliv, which uses crowdsourcing to find drivers to make deliveries. Like Lyft, SideCar and Instacart, such crowdsourced delivery services avoid the costs of warehouses, vans and drivers. Up-for-grabs crowdsourced delivery jobs also potentially improve speed versus those built on an in-house delivery infrastructure.

"Enabling retailers to use our stores to fulfill online orders the same day is fundamental in creating an omni-channel experience," said Scott Morey, senior vice president, GGP. "Our intent is to partner with retailers to create new consumer services such as same-day local delivery and pickup. Our malls will continue to be a point of distribution for unique retailers to serve our shoppers."

The move comes as Target recently announced intentions to roll out Buy Online, Pick Up in Store (BOPS) by the holidays, joining Walmart and Best Buy.

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