Will same-day delivery flexibility give Target an edge over Amazon and Walmart?
Target wants to give its customers more financial flexibility when it comes to receiving same-day delivery of items purchased online.
The retailer has announced that customers at 1,500 stores in 47 states served by its Shipt division can now choose same-day delivery on 65,000 items from target.com and have orders delivered in as little as an hour for $9.99. Until now, Target customers would need to pay Shipt’s annual $99 annual subscription fee or $14 monthly membership to get same-day deliveries.
Those holding Target’s REDCard will continue to get a five percent discount on items they order when paying with the card. Target expects to add the same-day delivery option to its mobile app in time for the Christmas holiday season. Customers can currently access it from their desktop computers or mobile web browsers.
“With same-day delivery now available directly within the Target.com experience, we’ve made it even easier for our guests to shop at Target — while still getting the great value, curated product assortment and helpful guest service they’ve come to expect,” said Dawn Block, the retailer’s senior vice president of digital operations, in a statement.
In addition to its Shipt service, Target also offers same-day pickup of online orders in all its 1,850 stores. Same-day curbside pickup is available at 1,400 locations. Target has seen a significant increase in its online sales, up 25 percent or more for five straight years.
The retailer has also sought to distinguish itself from other online competitors with Target +, an online marketplace that emphasizes a curated selection of products from third-party sellers that complement the goods it sells. The chain has focused its efforts on recruiting sellers in key categories, including consumer electronics, home goods and toys.
- Target Integrates Shipt Shopping and Delivery Service – Minneapolis Star Tribune
- Target to offer same-day delivery for $9.99 per order – The Associated Press/The Washington Post
- Target expands same-day shipping option, marking the latest move in the delivery wars with Walmart and Amazon – CNBC
- Target crushes it with strongest holiday results in years – RetailWire
- Will a curated marketplace strategy be an online game changer for Target? – RetailWire
DISCUSSION QUESTIONS: How do you assess Target’s overall digital sales progress compared with competitors such as Amazon.com and Walmart? Will Target’s new same-day delivery convert more customers to Shipt’s monthly or annual subscription options?