The Power of In-Store Fulfillment: Why it’s Time to Gain a Competitive Edge

Last holiday season, I found myself in a familiar situation: scrambling to find a last-minute gift.

I had my eye on a pair of boots for a family member, but it was the day before our gift exchange. Because I live far from a major city, large e-commerce retailers don’t have the proximity for next-day delivery to my home. I turned to a large sports retailer and it was able to deliver the boots directly from the nearby store the next day. Its ability to meet my needs wasn't just luck — it was the result of a smart, strategic delivery system it had in place well before the holiday rush.

This experience highlights a transformative trend in retail: in-store fulfillment. As consumer demand for fast and flexible delivery grows, retailers that integrate e-commerce with brick-and-mortar stores gain a competitive edge. In fact, 80 percent of shoppers want same-day shipping, and 61 percent want even faster options.

Why In-Store Fulfillment Matters

While many retailers focus on “hacking” last-mile delivery through complex logistics or third-party partners, in-store fulfillment is often faster and more efficient. By using inventory already in stores, retailers can fulfill online orders locally, reducing both shipping costs and delivery times. More than 25 percent of shoppers have even admitted they would abandon a cart online if same-day shipping wasn’t available, underscoring the importance of speed.

Several big-box retailers have mastered this approach. By treating their stores as mini distribution centers (DCs), they can offer same- or next-day delivery, beating the turnaround times of many large e-commerce competitors that rely solely on regional DCs. It can also reduce fulfillment costs by 90 percent. While every retailer’s needs are different and there's no “one size fits all” solution to in-store fulfillment, successful implementation generally comes down to three areas of focus: robotics, artificial intelligence, and data.

Including in-store fulfillment as part of an omnichannel approach is becoming increasingly essential for retailers to meet rapidly changing consumer expectations. Today’s shoppers don’t just want to click “buy” online and wait several or even a few days for their order to arrive — they expect options. Whether they’re shopping through buy online, pick up in-store (BOPIS), curbside pickup, or direct-to-door delivery, consumers want flexibility and speed.

Visibility is critical to meeting these expectations. The integration of AI-powered software with automated picking solutions, such as autonomous mobile robots (AMRs) or goods-to-person picking stations, helps optimize workspaces while providing the data necessary to maintain control over inventory.

Retailers that offer these options can differentiate themselves, especially during the holiday shopping period when demand spikes and consumers are looking for last-minute gifts.

Preparing for the Holiday Rush

The holidays are a critical time for most retailers, and those that succeed have invested in the right fulfillment strategies long before the peak season hits. AI, data, and robotics make it possible to use in-store inventory for local deliveries, allowing retailers to avoid DC bottlenecks during the busiest shopping periods and lowering shipping costs.

A robust in-store fulfillment strategy better positions retailers to stand out from the competition by offering faster delivery options and a seamless shopping experience. With the right mix of automation, inventory management, and store integration, in-store fulfillment can help retailers meet last-minute holiday needs — just like the sports retailer did for me last year.

The time to invest in in-store fulfillment is now. By integrating e-commerce with brick-and-mortar operations, retailers can offer the fast, flexible service their customers expect while gaining a critical edge over competitors. In an era when consumer loyalty can hinge on a single delivery, in-store fulfillment isn’t just a trend — it’s a necessity for success.

Kim Baudry is market development director at Dematic, a provider of supply chain automation, material handling, warehouse management, logistics, software and IT, and consulting Services.