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U.S. Retailers Drop Shipping Fees to Counter Weak Holiday Sales

  • Under pressure from Amazon, more chains add free delivery
  • Companies weigh increased costs versus higher sales per order
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Store Wars: Why Retailers Are Dropping Shipping Fees

Stung by a spending slowdown, more retailers are offering free online shipping, giving consumers a holiday gift but also cutting into profits.

This year, 90 percent of all retailers are providing free delivery, up from 78 percent in 2014, according to HRC Advisory. The strategies vary by company: Target Corp. and Best Buy Co. are providing free delivery on every purchase, for example, while Gap Inc. and Wal-Mart Stores Inc. require a $50 minimum.