Banana Republic has launched on-demand delivery from Postmates in the New York City and Southern California markets. The retailer will integrate the option within its buy online/pick up in-store (BOPIS) interface.
When customers get the email notification that their order is ready for pickup (usually within two hours), and if they are within a four- to five-mile delivery radius of any Banana Republic store in New York or Southern California, they’ll have the option to have Postmates deliver their order for free.
Banana Republic only launched its BOPIS offering in October 2019, so the program is still in its early stages. However, the company is seeking innovative ways to leverage same-day delivery as it attempts to bolster its value proposition.
“Same-day delivery with Postmates felt like a natural next step for us,” said Mary Alderete, CMO of Banana Republic in a statement. “Creating a seamless and convenient shopping experience for our customers is how we differentiate Banana Republic in this changing retail landscape.”
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The launch comes two months after sister retailer Old Navy partnered with Postmates for last-minute holiday deliveries. These partnerships have benefitted Postmates so far, with the delivery company reporting that clothing deliveries through the service have grown by 60% in the last year. Vivek Patel, COO of Postmates, said that its overall delivery-as-a-service product for retailers across categories has grown by 300% year over year.
Banana Republic, like the rest of the major Gap Inc. retailers, has struggled mightily in recent years to drive sales. The retailer saw a 3% comparable store sales decline in Q3, while Old Navy dipped 4% and Gap dropped 7%.
Such declines have forced Gap Inc. to try different business models across its brands as part of a push to jump on new consumer trends. In August 2019, Banana Republic launched a subscription service for women’s clothes called Style Passport, and earlier this month Gap Inc. partnered with fashion resale platform thredUP to enable shoppers to redeem credits for donating secondhand clothes to Gap, Banana Republic, Athleta and Janie and Jack stores.
Source: Retail Touch Points