Next-day shipping is old news. Now, it's all about hours — or minutes
Delivery in less than three hours used to be mostly available from the biggest retailers. Now the competition is getting bigger and faster.
In a rapidly evolving retail landscape, major U.S. retailers are transitioning from an emphasis on two-day delivery to a focus on hours or even minutes of arrival. Walmart, Target, Kroger, and Home Depot have recently expanded delivery times to three hours or less. This shift reflects U.S. consumers' demand for faster service, with many willing to pay for express shipping options.
Target, Walmart, and Home Depot have all recently highlighted commitments to delivering within three hours or less, signaling a new benchmark for customers. Target CEO Brian Cornell noted that 80% of households are within 10 miles of a Target store, which the company leveraged in its decision to use store locations as fulfillment hubs.
The growth in same-day service is attributed to increased online sales and store locations. Experts attribute the trend to two key factors: store density and order volumes. As online sales have grown, retailers have been able to support shorter delivery timelines by increasing the number of deliveries per hour, thus lowering costs. Walmart reported that 37% of its store-fulfilled delivery orders last quarter were completed in under three hours, with several instances of orders being delivered within minutes.
While drone delivery is a newer addition, Amazon has been a pioneer in this area, expanding drone service to nearly 500 US cities and towns by the end of the year. Orders delivered by drone arrive in as fast as 30 minutes, with most arriving around 60 minutes after checkout. However, some customers express reservations, stating that same-day or overnight delivery is fine, but they're not necessarily in a rush for their orders.
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