Does any retailer do curbside service better than Target?
Target has been clear that it wants to be known as the easiest place to shop in retail. Its Drive Up service has been a big part of that, and it may get even bigger as Target tests a convenience that will let customers pick up their Starbucks orders and return items in select markets without having to get out of their cars.
The retailer is also expanding its “backup item” functionality to enable customers the means to substitute items should their first choice not be in stock.
“Our guests continue to tell us they love the ease and convenience of Drive Up, and they have been asking us to add even more of the Target experience to the service,” said Mark Schindele, Target’s chief stores officer, in a press release. “Adding a Starbucks order and easy returns, while expanding our backup item options, will give guests even more of what they love about shopping at Target, quickly and easily. Ongoing investments in our same-day services have built trust and relevance with our guests, while meeting their needs — no matter how they choose to shop.”
Target surveyed Drive Up customers to discover what they would like to see in the service. The number one answer was being able to get their orders from Starbucks shops inside of the retailer’s stores.
Ordering from Starbucks or starting a return works the same as placing a Drive Up order. Everything goes through Target’s app.
The new services being tested follow other add-ons that Target has made, including options to pick up adult beverages, enable another person to make the pickup in place of the customer who ordered it and the “forgot something” feature that lets customs add items to previous orders for pickup via Drive Up or in-store.
Target COO John Mulligan indicated last November on the chain’s third quarter earnings call that 2022 would be a big year for Drive Up. The chain is adding thousands of items to the list of products available through the service and doubling the number of pickup stalls in store lots.
The retailer reported that sales through Drive Up jumped 80 percent in the third quarter, and that was up against a 500 percent increase during the same period in 2020. Drive Up generated $1.4 billion in sales during the quarter, according to Mr. Mulligan.
- Target’s Curbside Drive Up Service to Offer Starbucks and Returns – Target
- Target (TGT) Q3 2021 Earnings Call Transcript – The Motley Fool
DISCUSSION QUESTIONS: Do you expect service enhancements like Starbucks ordering and item returns to draw new customers to Target’s Drive Up service? How does Target’s Drive Up compare to other curbside services offered by retailers?