Dive Brief:
- Target has added new features to its same-day services (Order Pickup, Drive Up and Same-Day Delivery with Shipt) to make consumers' shopping trips run smoother and faster this holiday.
- Shoppers can now add backup grocery items in case their first choice is out of stock and pick which Target location a Shipt Shopper should shop at, according to a Tuesday press release. Consumers can also use the new Shopping Partner tool so that a friend or family member can pick up orders for them.
- In case consumers want to add an item after they placed their orders, Target has introduced a "Forgot something?" button in its app. Consumers can shop for the missing product and it will be added alongside their original order.
Dive Insight:
In pursuit of getting more orders into consumers' hands this holiday, Target is offering consumers more options to shop however they want and whenever they want.
The ability to add backup grocery items, excluding adult beverage items, for pickup is available on Target's website and app. Target said the new offering gives shoppers more convenience.
The change supports Target's growing grocery business. So far this year, Target has expanded pickup and same-day delivery for alcohol and grown its grocery private label, debuting Favorite Day, a line centered on snacks and sweet treats, and launching a plant-based line under its Good & Gather brand. In Q2 this year, the retailer's food and beverage sales grew in the "low double digits" on a year-over-year basis.
The number of fulfillment experts in stores has tripled over the last two years to support the demand for Target's same-day services, according to the release. Target has also given its associates a new guest service training to ensure "every Target guest feels welcomed and appreciated."
Order Pickup, Drive Up and Same-Day Delivery with Shipt have played a crucial role in Target's digital sales growth, especially since the effects of the pandemic began to unfold. In Q2 last year, Target posted a whopping 273% increase in its same-day services.
Target's years-long investment in these services has paid off during a time when contactless fulfillment and e-commerce experienced high demand. In its most recent quarter, digital sales were led by same-day services, which rose a modest 55% compared to last year's results.
Target, among many other retailers, rode the rise of BOPIS services last year. Growth in BOPIS services was 75% year over year by December, according to 1010data last year. At Target and Walmart, these services outpaced online sales growth last year.
As inventory constraints, labor shortages and supply chain issues loom over the season, Target also held early holiday deals and introduced a price match guarantee this month to encourage consumers to shop early and get their orders on time.
