Dick's Sporting Goods' (NYSE:DKS) ship-from-store service, which began as a pilot program in 2012, not only has boosted the speed at which packages are shipped to its customers but also has significantly reduced the retailer's shipping costs.
"This has many benefits: it allows us to connect online customers with any inventory at any store, it improves inventory utilization, it lowers shipping costs, and improves speed to our customer allowing us to now compete on speed. 75 percent of our orders are shipped to a customer within a 15-mile range of a Dick's store," said Michele Willoughby, executive vice president for inventory, supply chain and e-commerce for Dick's, on a recent conference call, RISNews reported.
Dick's began its From the Store program with 35 stores last May and quickly expanded to 115 stores by last year' holiday season. Now, all of its 527 stores offer From the Store.
Plus, Dick's will pilot a buy-online, pick-up-in-store program later this year, which the company believes will drive customers into its stores. Next year, the retailer will start a ship-to-store pilot program, allowing it to ship large, heavy items such as treadmills to stores for customer pickup or local delivery.
Dick's has also utilized its vendors to ship directly to customers for several years, which it says has improved inventory turn.
-See this RISNews article