We look at Target’s plans to expand its fee-based program which enables customers to have their in-store purchases delivered to home.
Customers can choose to have purchases delivered for $7
This service was initially piloted in New York last year at its smaller format concept at Herald Square, Manhattan. This was subsequently expanded to three additional stores in the city. For a flat fee of $7, when checking out, customers can chose to have their purchases delivered the same day, within a two-hour delivery window. By the end of April, Target will expand the service to almost 60 stores in Boston, Chicago, New York, San Francisco and Washington, DC.
Ease and convenience popular with shoppers
This service has been well-received by shoppers at the test stores, appreciating its ease and convenience compared to public transport. Large furniture items have proved to be the most popular items to be delivered. The service will be promoted with new in-store signage, while its integration into the checkout process should support usage.
Stores being reimagined as distribution hubs
Target is in the process of re-engineering its supply chain and stores to make this type of service possible. Last year it acquired Grand Junction, a technology company that helps retailers make deliveries faster and more efficiently. This provided the retailer with access to the company’s technology and carrier network, accelerating the work it’s undertaking to improve the speed of delivery. As part of its strategic focus on becoming ‘America’s easiest place to shop’, its stores are being repositioned as distribution hubs.