By Nicholas Hodson, Partner with Strategy&, PwC and Alexandra Hallas Button, Director at Strategy&, PwC
Without leveraging stores as fulfillment centers, retailers will lose to Amazon every time.
Amazon is big. Really big. By the end of 2017, Amazon will have picked, packed, and shipped approximately 5 billion items to U.S. consumers1. That’s north of 150 items every second. To support that volume, Amazon has built out an awe-inspiring network of fulfillment centers (FCs), sortation centers, cross-dock facilities — not to mention a nascent airline and growing fleet of vehicles — all designed to speed the efficient flow of merchandise around their system.