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Myer partners with Amazon to transform retail stores into parcel pickup hubs

Just a week after Myer announced its new Third Party Logistics arrangement with Australia Post, the department store has today partnered with a leading e-commerce giant to transform 21 Myer stores into Amazon parcel collection points.

On Thursday September 3, Myer announced, in partnership with Amazon Australia, the introduction of Amazon Hub – a network of Amazon parcel pickup points that, from next Wednesday, 9 September 2020, will be located at Myer Hub counters in 21 of Myer’s stores.

This follows Myer’s announcement last week that it has entered into a multi-year agreement with its eCommerce fulfilment partner, Australia Post, to provide warehousing and online fulfilment services.

This new partnership between Myer and Amazon Australia is aimed to strengthen and bridge online and bricks & mortar shopping experiences.

21 Amazon Hub locations will open in Myer stores at its well-established Click & Collect locations, providing Amazon customers with an alternative parcel delivery option; and an opportunity for them to access Myer’s range of products too.

In a statement, Myer confirmed there are plans to expand Amazon Hub into further Myer stores pre-Christmas, including Myer’s regional store locations.

Myer’s Chief Customer Officer, Geoff Ikin, labelled the partnership as a “win-win scenario” for both Myer and Amazon.

“Myer is uniquely placed to offer easy access and parking, and a safe environment where customers can shop our range of products and services, as well as now collect their Amazon purchases at 21 selected locations,” Geoff said.

“This will mean more customers coming into store, more regularly, to collect their Amazon parcel, or Myer purchases, and whilst there taking advantage of in-store services, such as beauty services and cafés– truly offering a one-stop-shop that integrates the online and offline worlds.”

Amazon Hub launched in Australia in November last year andsaid the global company is excited now to partner with one of Australia’s most well-known and trusted retailers, Myer, to provide customers around Australia with new and alternative delivery locations for their orders.

“Not only does it provide our customers with more control, but it enables them to enjoy a quick and simple pickup experience at Myer’s network of conveniently located stores,” he said.

Amazon Australia’s Director of Operations, Craig Fuller.

The department store has reported strong online growth during the the COVID-19 pandemic and combined with its partnership with Australia Post, the company’s new warehouse and fulfilment arrangements will underpin the next stage of growth in Myer’s online business, to further strengthen the fulfilment capacity and improve efficiency.

The partnership with Australia Post that is set to commence this month, will provide extra capacity to support online growth, particularly during peak trading periods, with more than 90,000 products to be housed at the 26,000sqm Australia Post facility.

The arrangements at Annandale Road in Tullamarine (Victoria) will supplement Myer’s existing online operations, which operate via its stores and distribution centres and includes Click & Collect and home delivery options.

QUT Associate Professor Gary Mortimer said the partnership is similar to Woolworths and eBay tie-up, where shoppers can pop into their local Woolworths store and collect their eBay purchases.

“Woolworths have offered eBay pick up in multiple selected stores. This works, as shoppers are more likely to visit a supermarket on a more regular basis and in most cases, they are conveniently located in suburbs around Australia,” he said.

He told MHD Supply Chain News it would be reasonable to see more dark stores increase across Australia’s retail landscape to facilitate a company’s online offer using decentralised distribution points, closer to its customers.

Gary said Myer’s new partnership will save Amazon on last-mile delivery.

“Amazon will benefit from this strategic relationship. Essential such a move reduce Amazon’s logistic costs and moves those costs to Myer. To explain, rather than Amazon being responsible for the cost of delivering individual packages to individual around Australia, they will now deliver a proportion of those packages to one location, a local Myer Store,” he said.

“It is not clear if Myer have considered these extra costs in this tie-up. Ultimately, a Myer team member will need to receive an Amazon delivery at the Back Dock, unload and transport packages to a Hub inside the store and then Myer will need to staff the Hub during business hours, in order to facilitate collection.

“I also don’t see the value of convenience. I mean, there isn’t a Myer in every suburb, meaning unless you live or work near a Myer store, your will need to drive, park and navigate a shopping centre. It would seem more convenient to have the packages delivered to your door.”

Delivery to an Amazon Hub at Myer is available for millions of items sold on amazon.com.au, it works with Free Expedited Delivery and Standard Delivery, and is available to Amazon Prime customers at no extra cost.

This service is in addition to Myer’s full range of products across various categories including; fashion, beauty, home and toys that are all available 24/7 through myer.com.au, with a Reduced Free Delivery Threshold, and a Click & Collect service available at all 60 stores nationwide.

Myer’s 21 Amazon Hub store locations from Wednesday, 9 September 2020:

NSW: Sydney City, Bondi Junction, Chatswood, Warringah, Macquarie, Parramatta, Castle Hill, Roselands.

VIC: Melbourne City, Highpoint, Doncaster, Chadstone, Southland, Geelong.

QLD: Brisbane, Chermside, Carindale, Pacific Fair, Maroochydoore.

SA: Adelaide

WA: Perth

Related story: Myer signs 3PL deal with Australia Post

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