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Thinking out of the big box: How big box stores are competing with Amazon - ABC News

I place an order on my phone from Walmart.com, just two hours later, I receive a notification that it’s ready for pickup. At this Wal-Mart test facility that offers the service, I pull up to a kiosk outside and without ever getting out of the car, I use a touchscreen to find my order, I pull forward into the delivery bay, and a Wal-Mart employee loads the items into my car. I would have loved this when my kids still napped in the car or if I had mobility issues. Wal-Mart’s Anne Hatfield says, “We see most pickups at night. People order their groceries online and drive through to pick them up on the way home.” Wal-Mart touts the speed of this shopping method; to compete with Amazon’s one-day delivery, it says picking up at a nearby store on the same day is more convenient for many shoppers. Wal-Mart is so convinced about this order online and pick-up in-store model that it is incentivizing customers with discounts. On the company’s blog, e-commerce CEO Marc Lore says, “The pickup discount will initially be available on about 10,000 items. We will then roll out the discount to more than one million of the most popular items by the end of June.” The chain calls out a $50 discount on an HD TV and an $8 discount on a car seat. Not to be outdone, Amazon countered by lowering the minimum purchase threshold for free shipping from $35 to $25. While these may not seem like Black Friday discounts, it’s a savings arms race worth watching. As retailers get more creative and aggressive, they will be fighting with discounts to get your business.

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