Zumiez Sees Expansion Potential in its Own Delivery Service
Currently available in 24 U.S. markets and 150 stores, Zumiez Delivery may provide the specialty retailer with an advantage during the holiday season as traditional shipping companies set restrictions due to capacity constraints. The in-house delivery service, staffed by Zumiez employees, accounts for 5-10 percent of the banner’s daily deliveries now.
The fourth quarter should give the retailer a better handle on the costs of its own delivery service versus that of a third-party shipper and an understanding of any program kinks that may need to be straightened out. Already, however, Zumiez CFO Chris Work thinks the service has the potential to be expanded further domestically and rolled out internationally.
Elsewhere, Zumiez continues to face supply chain issues involving its footwear business that has resulted in inventory shortages on some hot-selling styles.
“I know our partners are working their hardest to get product in place for not only us but also for all of their partners and probably their own direct businesses,” commented Zumiez CEO Rick Brooks. “So I think that what transpired in footwear is just that it’s such a size-intensive business that when the pandemic hit, people took some pretty dramatic actions relative to managing their own inventories and supply chain structure. And it takes them (footwear companies) a lot longer to get it fired back up again, particularly with the size complexity you have in footwear."