Groupon says its focus is on the bottom line, rather than top-line growth.
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Although 95% of customers who were given the option chose same-day delivery, Neal feels the results were skewed because the service was free. But more importantly, Gymboree found that in-store distribution was problematic. Some orders were delayed because the inventory could not be found. Employees had to be trained to do gift wrapping. And the store ran out of wrapping supplies on several occasions. “Things got crazy,” Neal recalls. “Fortunately we didn’t have an overwhelming number of orders. Our pick-and-pack costs were high. It was not the most efficient way to fulfill orders. Next time, we will probably distribute goods from one of the distribution centers.” Gymboree also plans to test what consumers are willing to pay for the service.