Large retailers look to capture an outsize share of procrastinators' holiday spending

The deadline: The cutoff dates for ecommerce orders to arrive at consumers’ doors in time for Christmas Day are fast approaching, per Digital Commerce 360.

• The median standard shipping cutoff date across a panel of 100 online retailers is December 15. For orders using any type of available shipping, the median cutoff date is December 18.

A built-in advantage: Even before online retailers’ cutoff dates passed, consumers expected to consolidate their holiday shopping by purchasing from an average of 2.4 different types of retailers this holiday season, down 29.4% from 3.4 just a year earlier, per ICSC.

That trend benefited large retailers (most of which operate online marketplaces), with those same merchants poised to capture an outsize share of spending as consumers’ online shopping options narrow. That’s why several have new initiatives to appeal to procrastinators.

• Amazon, which has pushed to speed up delivery throughout this year, added “Arrives before Christmas” on both search results and item detail pages and launched a same-day holiday gift guide. It also offers same-day delivery or in-store pickup options from retailers such as Sur La Table and Fabletics.
• Best Buy is offering steep discounts and multiple free fulfillment options that include free delivery for orders placed up until noon local time on Christmas Eve (orders will arrive by 7pm), and store and curbside pickup for orders placed by 5pm. It has several sales, including an Apple-specific event launching on December 14, a separate aptly named “Last-Minute Sales Event” running from December 18-24, and Best Buy Drops—its app-only experience that enables shoppers to access limited-time deals and exclusive product releases—running through December 22.
• Target is extending its store hours (with most stores open from 7am to midnight through Dec. 23 and 7am-8pm on Christmas Eve), offering Drive Up and Order Pickup for orders placed as late as 6pm on Christmas Eve, and as quick as one-hour delivery orders placed via its same-day delivery service, Shipt, before 4pm.
• Walmart’s final sale runs through December 21 and shoppers can select from multiple fulfillment options. Its express delivery service—which is available until 4pm on Christmas Eve—allows customers to receive delivery from their store within two hours (Walmart+ members can use the service for free one time in December). Its online pickup and delivery services are available until noon on Christmas Eve.

The big takeaway: While large retailers are well-positioned to continue collecting holiday shopping revenues through December 24, other merchants face more challenges.

• Smaller businesses have grown reliant on online marketplaces operated by the likes of Walmart or Amazon, which make it easy for shoppers to consolidate their shopping.
• But relying on online marketplaces to drive sales comes at a significant cost. Marketplace sellers have little choice but to spend heavily on retail media to stand out, and on services such as Fulfillment by Amazon to capture and deliver last-minute purchases—both of which can eat into profitability.