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Amazon is seeking to continue to grow its delivery network through a partnership with another retailer.
The news: Amazon is partnering with Rite Aid to test out two-hour delivery in a pair of markets. The service will provide delivery of personal care items in Newark, New Jersey, and Burbank, California. Shopping is completed through Amazon, and a landing page is now live.
How it works:
- Prime members will have access to the service in the two launch markets.
- Items offered will include grocery, personal care and cosmetics. The California location will deliver alcohol.
- Prescriptions and pharmaceuticals will not be available.
- Fees are as follows: $2.95 for orders $75-$100, $4.95 for deliveries $40-$75, and $6.95 for deliveries under $40.
Key quote from Amazon: “Rite Aid’s availability on Amazon provides our local Prime members in Newark, New Jersey, and Burbank, California, with even more selection and convenience as they continue to shop for health and personal care, cosmetics and grocery essentials online and trust they will be delivered to their door fast. We’re consistently looking for ways to offer more choice, flexibility and value for Prime members, so we look forward to expanding our two-hour delivery window offering to more Rite Aid locations in the future.”
Store to door: As it continues to grow its logistics network, Amazon is increasingly working with other retailers to provide delivery services. For the ecommerce giant, this represents a business line that allows the delivery network it built for its own use to be accessed by others. It also helps to grow Amazon’s assortment, which has long been a key part of the company’s flywheel that brings advantages on price and customer loyalty. It builds on an announcement from last year, when Amazon debuted a new service that provided delivery from mall-based retailers.
Drug store + delivery: The partnership signals Amazon’s entrance into an area of retail that has not been as quick to adopt the fast delivery model. Drug stores prize their local proximity to populations, making omnichannel offerings in-store pickup a highlight of digital offerings. While they have offered ecommerce, drug stores have not built out logistics networks. This means they work with other providers. In this case, Amazon is entering the fold, signaling it sees an opening in the market. While no pharmacy delivery is available now, it wouldn't be a stretch to see the company explore this area, given its interest in expanding into healthcare via the recent acquisition of primary care service One Medical.
Convenience + time: The ever-increasing capabilities of Amazon to deliver quickly and the emergence of instant delivery services like Gopuff are raising customer expectations that items can be at their door soon after they are ordered. This is creating more demand for the everyday and convenience items available at drug stores. Some delivery providers, like Uber, are partnering with convenience stores to provide fast delivery. Amazon and Rite Aid are showing a path through the drug store. As noted above, Rite Aid’s many locations at the neighborhood-level could serve as an advantage. While the service is available in two markets now, Rite Aid has plans to expand it to more of its 2,244 locations around the country.
“Our customer-centric approach complements the busy lives of our consumers to conveniently meet them where they are, which is why we are excited to team up with Amazon to provide local Prime members convenient access to deliver everyday essentials right to their doorstep with two-hour delivery windows,” Rite Aid said in a statement.
Trending in Retail Channels
On the Move has the latest from Amazon, Lovesac and more.
This week, leadership is changing at GameStop, Sorel and Beautycounter. Meanwhile, key executives are departing at Amazon, Wayfair and Lovesac.
Here’s a look at the latest shuffles:
GameStop CEO fired
GameStop announced the termination of Matthew Furlong as CEO on Wednesday. A brief statement did not provide a reason for the firing.
With the move, Chewy founder and activist investor Ryan Cohen was named executive chairman of the video game retailer. Cohen will be responsible for capital allocation and overseeing management.
It came as the company reported a 10% year-over-year decline in net sales for the first quarter. Meanwhile, the company’s net loss improved by 62%.
In an SEC filing, GameStop further added this “We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders.”
Cohen was revealed as GameStop's largest shareholder when he disclosed a 10% stake in the retailer in 2020. GameStop went on to become a leading name in the meme stock rise of 2021.
Sorel president steps down
Mark Nenow is stepping down as president of the Sorel brand in order to focus on his health.
After rising to the role in 2015, Nenow spearheaded a transformation of Columbia Sportswear-owned Sorel from a men’s workwear brand to a fashion-focused brand that led with a women’s offering of boots, sandals and sneakers.
“Mark led the brand to sales of $347 million in net sales in 2022,” said Columbia Sportswear CEO Tim Boyle, in a statement. “His leadership has been invaluable to this company, and we wish him the very best.”
Columbia will conduct a search for Nenow’s replacement. Craig Zanon, the company’s SVP of emerging brands, will lead Sorel in the interim.
Beautycounter appoints interim CEO
Beautycounter appointed board member Mindy Mackenzie as interim CEO, succeeding Marc Rey. According to the brand, Rey and the board “mutually decided to transition to a new phase of leadership for Beautycounter.”
McKenzie, a former executive at Carlyle, McKinsey and Jim Beam, will lead the company as it conducts a search for a permanent CEO. Additionally, former Natura & Co CEO Roberto Marques will join Beautycounter’s board as chair.
As part of the transition, Nicole Malozi is also joining the company as chief financial officer. She brings experience from Tatcha, Nike, and DFS Group Limited.
Amazon’s North America fulfillment chief departs
Melissa Nick, a VP of customer fulfillment for North America at Amazon, will leave the company, effective June 16, CNBC reported. Nick joined the company in 2014, and oversaw a region that included nearly 300 fulfillment centers. After doubling its supply chain footprint during the pandemic, Amazon recently reorganized its fulfillment operations to take a regional approach, as opposed to a national model that often resulted in items shipping across the country.
Wayfair’s chief commercial officer to retire
Jon Blotner (Courtesy photo)
Steve Oblak will retire from the role of chief commercial officer at home goods marketplace Wayfair. With the move, Jon Blotner will be promoted to chief commercial officer.
"Steve has served as a critical part of our leadership team and played a pivotal role in Wayfair's growth, helping us grow from a $250 million business when he joined to $12 billion in net revenue today,” said Wayfair CEO Niraj Shah, in a statement. “He oversaw countless milestones, from helping to launch the Wayfair brand as we brought together hundreds of sites into a single platform, to launching new categories, business lines, and geographies while overseeing our North American and European businesses, to leading our debut into physical retail.”
Blotner previously oversaw exclusive and specialty retail brands, as well as digital media at Wayfair. Before joining the company, he served as president of Gemvara.com prior to its 2016 acquisition by Berkshire Hathaway.
Lovesac announces CFO transition
Furniture retailer Lovesac said Donna Dellomo will retire as EVP and CFO, and move to an advisory role, effective June 30. Dellomo was with Lovesac for six years.
Keith Siegner was appointed as the next EVP and CFO. He brings experience as CFO of esports company Vindex, as well as executive roles at Yum! Brands, UBS Securities and Credit Suisse.
Additionally, Jack Krause will retire from the role of chief strategy officer, effective June 30. His responsibilities will be divided between CEO Shawn Nelson and president Mary Fox.
“Since joining Lovesac, Jack has played an instrumental role in transforming the Company into a true omni channel retailer by helping expand our physical touchpoints and digital platform as we continue to disrupt the industry,” said Nelson, in a statement.
NRF adds board members
The National Retail Federation announced the addition of five new board members. They include:
- Marguerite Adzick, founder and CEO, Addison Bay
- Harley Finkelstein, president, Shopify
- Ian Kahn, partner, PwC
- Sharon Leite, CEO, Ideal Image
- Carrie Tharp, VP, strategic industries, Google Cloud