Macy's expands same-day delivery

Macy's, Inc. (M) plans to expand its same-day delivery service for online Macy's orders to nine new markets starting this month, surpassing Amazon (AMZN) in the number of locations such a service is offered.

The company said Monday that the decision was made based on the ability of local stores to stock inventory and its delivery partner, Deliv, expanding to new areas.

The service "is an important part of our value proposition as an omnichannel retailer,"  said R.B. Harrison, Macy’s chief omnichannel officer, in a statement.

Same-day delivery is now available in Atlanta, Boston, Dallas, Honolulu, Las Vegas, Miami/Ft. Lauderdale, New York/Western Long Island, Orange County, Calif., Philadelphia, Washington D.C., Seattle, San Francisco, the greater San Francisco Bay Area, Chicago, Houston, Los Angeles and Northern New Jersey.

Macy's operates about 885 stores across the country. Some locations will also offer same-day delivery to Bloomingdale's customers. The expansion means Macy's is going head-to-head with online market leader, Amazon, which offers same-day delivery to Amazon Prime customers in 14 metro areas, and in some cases offers one-hour to two-hour delivery for select items.

Amazon's service is free for Prime members with orders over $35, but costs extra for one-hour delivery. Macy's same-day delivery costs $5 above standard ground shipping rates.

Other retailers have been testing same-day delivery as they look to offer customers more convenience and product accessibility. Walmart currently offers same-day delivery specifically for groceries in five locations. Target has "rush delivery" for a $10 fee in Boston, Miami and Minneapolis, but may expand to more locations.

Follow Hadley Malcolm on Twitter @hadleypdxdc