Last Mile Delivery
For retailers, the last mile isn’t just the final step in getting an order to the door —
it’s where profitability, customer loyalty and ownership of the customer
relationship are ultimately won or lost.
Demand for home delivery has grown rapidly, yet providing it at a profit remains difficult and with no single proven pathway to success. New entrants are raising service levels and subsidizing losses to capture share. Today’s delivery partners can become tomorrow’s competitors, and every retailer experimenting with how to pick, pack and deliver is consuming cash and time in the process.
The stakes are easy to underestimate. As online takes a growing share of retail sales, 83% of shoppers say they are unlikely to return to a brand after a poor delivery experience – while home delivery for store-picked groceries can carry margins as low as -15%.
The prize for getting it right is just as clear: dominate delivery and you can own the customer, their data and their share of wallet. The cost of getting it wrong is exactly the opposite.
Winning means balancing rising consumer expectations against the hard economics of fulfillment — a balance that plays out across three decision levels:
- Strategy – Setting the foundation: designing the right service offerings by customer and journey, evaluating which logistics models and partners fit your reality, and costing the options before committing.
- Operationalize – Bringing strategy to life: building the operating model, technology platform and organizational structure needed to deliver reliably, efficiently and profitably, with real care for the people who make it work.
- Implement – Proving and scaling: launching controlled pilots, planning a wider rollout that minimizes disruption, and providing hands-on support so teams can sustain and improve the change.

What “getting it right” looks like
3 core components required to win

The last-mile race is more than a cost exercise
Reviewing last-mile logistics is often framed as a way to cut costs, but the upside runs further. Strong delivery experiences feed basket size, loyalty, new revenue streams and visit frequency: 98% of customers say shipping affects their brand loyalty, and over half of satisfied customers say they would pay for a delivery membership.
Download the full report to access Integration’s three core components for winning the last mile, real client cases with measurable results and a practical path from strategic focus to operational execution, designed to give you clear direction within six weeks.
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- On 26 February 2026










