Photo: Target
Target makes it easier for customers to stay in their cars
Target customers across the country will soon be able to return items to local stores without having to get out of their cars.
The retailer last week said it has completed a successful test in Minneapolis that gave customers the option of returning unwanted purchases as part of its Drive Up service. Target said it will begin rolling out Drive Up returns this spring with the goal of having it available at all of its nearly 2,000 stores by the end of the summer.
The retailer’s Drive Up service is a popular part of its same-day fulfillment operations. The chain’s customers place their orders via app, drive to designated parking spots in the store’s lot and have their purchases brought to them by a Target team member. Returns work in a similar fashion through the company’s app.
Target’s customers will be able to return most new, unopened items within 90 days of purchase. Customers buying Target-owned brands will be able to make returns for up to a year. No fees are attached to returns at the retailer.
“Our journey to expand our fulfillment options starts with making it easier for our guests to shop with us,” Mark Schindele, Target’s executive vice president and chief stores officer, said in a statement. “That’s why we’re launching Drive Up Returns. Allowing our guests to process a return from the comfort of their car underscores our commitment to helping our guests shop — and return — however they choose.”
Target is touting its new Drive Up returns as an indicator of how it is innovating in the same-day fulfillment space.
Management points to Target’s Shopping Partner option that gives customers the option of designating someone else to pick up a Drive Up or in-store Order Pickup purchase. The “Forgot Something?” button in its app lets customers add items to an existing order for pickup outside or inside its stores.
The retailer has also added Starbucks to its Drive Up menu in select locations. Target in November began giving customers at 240 locations in California, Delaware, Minnesota, New Jersey, Pennsylvania, Texas, Washington and West Virginia the ability to place drink and food orders and have their purchase brought to them along with their Drive Up order in the parking lot.
Discussion Questions
DISCUSSION QUESTIONS: How do you expect Target’s customers to respond to its Drive Up return service? Is this a feature that will become common in retailing circles soon?
Poll
Loading …BrainTrust
Christine Russo
Principal, Retail Creative and Consulting Agency
Bob Phibbs
President/CEO, The Retail Doctor
A few retailers offer curbside returns, including Dick’s, Nordstrom, and DSW. Walmart also offers the service at select locations. So this isn’t so much a completely unique innovation as it is Target keeping pace with consumer demand and making things more convenient for shoppers. That said, because of the strength of Target’s omnichannel proposition and its success in areas like curbside pickup, I can see this being widely used by its shoppers. If Target can encourage more returns to be made to stores, this will also help with profitability as it is often cheaper to process returns at stores than have customers ship them back. Of course, the small downside is that if people aren’t going into stores the chance of them buying other things on impulse is somewhat diminished.
Part of the reason that Target is a leader is because they continually innovate and offer new services for their customers. Drive Up returns will undoubtedly make returns easier for some customers. But as much as this service provides a valuable time saver for customers, it completely misses any opportunity to sell the customer something new since they no longer need to enter the store. Overall, I think it’s a great customer service for those who want it, but I’m not convinced that it will be the next “must have” for retailers.
Mark, I had the same thought when I first read this. However if the emphasis of the retailer is to serve the customer however and wherever the customer wants, then the retailer is making a conscious decision to forego a possible impulse sale by not “forcing” the customer back into the store. In that respect, “returns from my car” is no different than allowing customers to mail back their unwanted, returnable items. In both cases, the customer is not going into the store.
Fair point Bob. I have no doubt that Target’s decision makers considered the loss of impulse sales as a result of Drive Up returns and concluded that it’s still worth doing.
Mark, Bob, I suspect Target realizes that the target audience that will use Drive Up Returns are customers who are less likely to enter the store for that return. Most likely they would have wanted to ship a return back to Target. And if these customers are already Drive Up users, then they’re doing their engagement online vs in-store and offering them returns this way could be more a customer retention move than a customer lifetime value initiative.
Curbside pickups, Starbucks and now returns will make shoppers fall more in love with Target. Returns have ballooned and this innovative approach will help Target cut costs.
Customer convenience is a retail imperative. Adding drive-up returns is one of the many ways Target is focused on making shopping as convenient as possible. Giving customers options lets them pick the journey or process that works best for them. For example, a shopper with children in car seats may find it very convenient to use drive-up or curbside services to avoid taking their children out of their cars, which can be a hassle.
The interesting thing about this is that it’s a great idea, but for retailers other than Target. Target shoppers are in stores so often, I’d think they wouldn’t mind going into the store. Plus, BOPIS tends to be more commonly used than curbside, so I would also guess that would translate into a preference still for going in and returning versus doing it curbside. If this is much faster than in-store returns this could take off, but I’ll be curious to see if it’s a good fit for Target.
I’m all for increasing customer convenience, but this is a move in the wrong direction for Target’s profit margins. Returns should be painless, but not necessarily frictionless since friction leads to opportunity both for the retailer and the customer. The goal for any retailer should be to reduce returns, and to increase the odds a customer will buy something else while returning a product. Target’s new initiative not only fails to accomplish these goals, but signals to shoppers that returns are even encouraged. Not to mention the traffic snarls it has the potential to create for in-store shoppers. A better system would be to leverage self-serve technology to make an in-store returns process intuitive and easy, but bringing the shopper inside the store to reinforce brand connection and hopefully encourage additional browsing. Returns are a necessary evil for retailers and a perceived failure for the shopper, so shouldn’t both sides be given the chance to access all possible benefits from that return?
Have you ever watched how men and women navigate places like Starbucks? Men are happy to go inside, while women prefer the drive-thru even if the line is 20 cars long. Target just made a whole lot of women happy. And added another step to kill impulse purchases.
Personally, I’m delighted to use drive-up exclusively for my Target runs. That said, I have noticed that demand for the service seems to be way down. Where only a few months ago it was sometimes difficult to find an open BOPIS parking spot, these days I’m often the only car waiting. I’ve also noted that the Walmart BOPIS and home delivery seem to have a lot more same-day openings available when I make a purchase. Again, not so long ago, delivery spots were days out. I wonder if BOPIS is settling in as a niche business.
Curbside returns are growing in popularity which is great if you have the right setup so you don’t have to worry about traffic snarls, have enough labor — labor that is trained to deal with sometimes hostile customers — and want to forgo impulse sales. My bet? Target customers will end up loving it more than Target does.
It’s a simple idea and a good one. Target already markets its curbside pickup more aggressively than its competitors do, and this is a logical extension of the same concept. It may not have a huge impact on in-store visits (especially if the customer wants to exchange something), but it helps Target’s “Expect More” messaging for sure.
Interesting because I thought BOPIS-type service was being pulled back industry-wide. But I think the net/net is to give customers what they want. It seems that there are no longer sweeping silver bullets and that success is made up of iterative solutions.
The real message is the title. “Target makes it easier for customers to stay in their cars.” It is a recognition of the value of convenience for the customer and a look into what more customers will desire.
We have all heard “time is money.” It works that way even for individuals. Will they trade off the price for convenience? Definitely.
Those retailers that don’t respond to that mantra will be left behind.
Is Target now offering BORAC? Buy online, return at curb? Not many retailers can afford to forgo the opportunity to resell to the customer. But for Target, it only deepens the loyalty quotient. The customer will certainly be back. The return hasn’t been prevented, but the task has certainly been streamlined.
I fear for Target with this choice. Their services have previously been wisely chosen. But taking products to customers in cars is ultimately simple when compared with returns. We need hope for Target that this doesn’t lead to the downfall of their automotive pick up efforts.
Several of my colleagues are concerned that the store will lose sales if customers adopt more drive-up options rather than going into the store.
Is the objective of the retailer to force shoppers to go into the store or to provide the customer with the benefits (like convenience) they want? In 10 or 20 years, will anybody go into the store?
Customers will probably love it (why wouldn’t they?) but what about shareholders? This caught my eye: “No fees are attached to returns at the retailer…” Not much of an issue, or at least not more than we’ve already talked about a lot — when it’s “in-store,” but I wonder how much labor (and expense) is involved in traipsing out to the parking lot. What’s next? I predict it will be home-delivered (undelivered?) returns … why be troubled by having to go to the store?
Did you say doing business with you would be easier? Count me in for that! Customers want ease and convenience. Target’s new Drive Up return service just checked that box.
This is another example of people who don’t like people working in retail to make the brick-and-mortar world more like themselves. Sorry, this is just doesn’t scale for the amount of effort when it is so hard to find reliable employees; you’re frittering away on task management.
Target continues to make themselves the easiest place to shop for consumers, adding drive up returns capability is a direct reflection of that. This will be a big hit for customers already using Drive Up services. I would also consider that for customers who order online and have their products shipped to them, this will be a big win as well — they were likely shipping returns back vs coming to the store anyway. I consider that a retention move rather than a way to grow lifetime value. What will be interesting to watch is how well each local Target is able to execute a combination transaction where a customers picks up a new order via Drive Up, makes a return, and buys a Starbucks coffee. The success of this experience lies in the execution details!
This is an excellent move for Target, and for a period of time, at least until other retailers follow their lead, it will influence the choice consumers make to purchase products.