Costco, Wal-Mart Test Office Supplies Delivery Services
It seems Office Depot and Staples have some new competition. Costco and Sam's Club of the Wal-Mart division have gotten in on the office supplies market with the help of same-day and next-day delivery. In San Diego, Costco is testing same-day grocery and office supplies delivery to small businesses with the help of Instacart. Meanwhile, TheStreet reports Sam's Club debuted next-day delivery in Dallas, Miami and Tulsa, Oklahoma. Sam's Club is working with multiple delivery startups such as Deliv for smaller orders and Need It Now for larger orders.
Total Retail's Take: Seems like retailers are striking while the iron is hot. The dust hasn't even settled from the recent failed merger between Staples and Office Deport and already competition is stepping in. Costco and Staples are taking aim at Office Depot's greatest pain point — shipping. Last year, sales declined 7 percent in the second quarter for Office Depot's North American business solutions segment, which primarily ships office supplies under contracted business. The addition of same-day and next-day delivery of office supplies has given Costco and Sam's Club the upper hand.