Another retailer is stepping up the plate…
Bed Bath & Beyond is offering a brand new shipping option.
Yesterday, we talked about Amazon officially announcing its dates for one of the most highly anticipated shopping days of the year – Prime Day. We also speculated that other retailers would be looking to keep up with the e-commerce giant – bringing their own discounts and deals to the table. Well, we’re right, and it didn’t take long.
The large home good retailer, Bed Bath & Beyond, announced it would be providing same-day delivery, just in time for the incoming holiday season as a record-breaking number of consumers continue to keep their shopping habits online.
Where’s the money?
Here are the details…
Bed Bath & Beyond has1,478 stores, including 955 Bed Bath & Beyond and 127 buybuy Baby locations. Across 48 different states, those stores will offer same-day delivery -as long as the customer resides in an eligible ZIP code. There will be a flat-rate fee of $4.99 for orders of more than $39.
And this fast shipping is made possible by a partnership with Target-owned Shipt, which helps fulfill same-day orders for several other retailers, including Costco and Kroger.
This decision comes on the heels of many upgrades made to Bed Bath & Beyond’s online buying process over 2020. This year, the company debuted a buy online, pick up in-store option, and contactless curbside pickup during the pandemic. These measures paid out big too. For the quarter that ended on May 30, its online sales surged 82% – with increases of more than 100% during April and May. Shoppers flocked to Bed Bath & Beyond’s and buybuy Baby’s websites for hand sanitizers, cleaning products, diapers, and more.
But even with these steps – I still have my doubts. And here’s why…
How can I get some?
Many are celebrating this decision- but for me, I’m asking an important question – why did it take so long to put this kind of plan into action? Every single brick and mortar store should have rolled out a program like this months ago.
And if I’m honest, I don’t think this will help Bed Bath & Beyond in the long run. And I still believe they are going to run into the same issue – Amazon’s dominance. The sooner we realize that no one will ever be able to compete with Amazon, the better our investing game will be.
So, don’t follow the investors chasing after this retail pipe dream. Instead, set yourself up for profits by playing the continued downfall of that exact industry. And you can do that by shorting SPDR S&P Retail ETF (XRT). By shorting an ETF designed to track the retail sector, you can secure a nice gain on the struggling retail world’s shortcomings.
In the spotlight: A possible stimulus package in the making…
We saw U.S. stocks rally recently thanks to one thing: the hope that a currently divided Congress would come together to pass another stimulus package to help alleviate the struggles caused by the pandemic.
Back in May, Congress passed a $3.4 trillion stimulus package – but it’s been a struggle to find common ground between the republican and democratic parties since. But recently, the Democrats have announced that they’re prepared to move forward with a scaled-back $2.2 trillion package.
This package would include additional support for small businesses and airline workers and funnel funds for education and child care. The bill also pitched a second round of $1,200 checks for Americans and would also bring back the $600 per week in federal unemployment payments, which expired in July.
Now, while the market might have reacted kindly to this news doesn’t mean that this bill will happen. In fact, as of right now, that price tag is too high for the Senate Republicans and the White House. But it’s a starting place, and that’s what investors are currently focusing on. With that said, I would be buying into this positive news just yet. But it’s something to pay attention too – and I’ll be sure to keep you updated.
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