Updated to include J.C. Penney details.
Electronics giant Best Buy has expanded a same-day delivery pilot program that launched last fall in San Francisco to 13 U.S. markets, it revealed in a blog post Wednesday. The program is in partnership with Deliv, which uses independent contractors to delivery the merchandise.
Best Buy added New York City to the program earlier this year, and then rolled it out to the 11 other markets the service operates. The new markets include Atlanta, Boston, Chicago, Dallas, Houston, Las Vegas, Los Angeles, Miami, Philadelphia, Seattle and Washington, D.C.
Orders are being shipped from 165 Best Buy stores in the Deliv markets.
Best Buy's expansion comes as Amazon recently announced it has almost doubled the number of metro areas in the U.S. that now qualify to receive free same-day delivery on orders placed through its Amazon Prime service. Most delivery fees for Best Buy's service range from $12 to $20, except for printer ink, which is delivered for free.
Best Buy could certainly use the sales lift provided by more quickly meeting digital orders by customers.
Best Buy's same-store sales for the holiday season fell 1.2% in the U.S. A year ago, U.S. same-store sales rose 3.4%. Total revenue, which includes results from Best Buy's international operations, came in worse than expected, declining by 4.4% to $10.9 billion. Previously, Best Buy expected that domestic revenue would be unchanged for the holiday season.
It's become all the rage for bricks-and-mortar retailers to launch same-day delivery services to better compete online.
Macy's (M) launched same-day delivery using Deliv in late 2014, and has since expanded it to over 17 markets. And Kohl's (KSS) started a pilot of same-day delivery in September in Chicago and San Francisco.
J.C. Penney (JCP) is taking a different approach to same-day delivery, at least for now.
In the fourth quarter, J.C. Penney began testing same-day pickup for digital orders in about 10% of its stores, or roughly 101. According to a company spokesman, the capability will be available at all of J.C. Penney's over 1,000 stores by the end of the second quarter.