Store-based fulfillment is a model that has resurfaced in response to the growth of e-commerce. This strategy, which uses local stores to process online orders, predates modern digital retail, dating back to the late 19th century. The approach gained popularity during the pandemic, enhancing delivery speed and cost-effectiveness. Major retailers, such as Walmart and Target, have implemented this model extensively, with Walmart fulfilling 50% of its online orders through stores and Target achieving a 95% fulfillment rate after significant investment in their store network.
During the pandemic, the store-based fulfillment model, a prime example of "omnichannel fulfillment," went mainstream, promising faster, cheaper delivery by using local stores to fulfill online orders.
Walmart now fulfills half of its online orders through stores, while Target, after a $3 billion investment, fulfills 95% through nearly 2,000 locations.
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