US Insights

Target Nears Full Digital Integration With Same-Day Delivery

Tory Gundelach

Vice President, Grocery

Retail 06.19.2019 / 12:00

TargetStorefront

This initiative shows that the retailer is thinking about the long-term strategy for its digital assets.

Target announced last week that same-day delivery is now available via Target.com. In doing so, Target brings Shipt’s capabilities directly to the Target web platform. From a user experience perspective, this integration makes total sense. Now, Target shoppers do not need to leave target.com to place a same-day delivery order. 

The last few years have been all about retailers building out (or buying) online fulfillment capabilities, but simply having those capabilities is not enough. The retailers that will be successful are the ones that are able to create a seamless and frictionless experience for shoppers as they move across channels and fulfillment methods. Retailers should be focused on removing barriers for shoppers to complete a purchase, be it through consolidating platforms, minimizing the number of steps or clicks, showing purchase history from multiple channels, etc. 

This initiative is a positive sign for Target as it reflects that the retailer is thinking about the long-term strategy for its digital assets. The fact that Target is willing to go through the work to integrate the platforms now shows it understands evolving shopper expectations.

Targetdeliver 

This move also signals to investors that Target is serious about omnichannel and is able to compete with Amazon and Walmart. Amazon continues to pose a threat to Target since 64% of Target’s regular monthly shoppers are Prime members (compared to 50% of all U.S. households). Services like Prime were the impetus for buying Shipt, but moving towards an integrated platform shows that Target isn’t just trying to keep up with competitors like Amazon, the retailer is working to compete head on. 

Assuming that Target is able to embed same-day delivery into its mobile app (currently same-day delivery is only accessible through its .com properties) it will be the first of the major retailers to offer a fully integrated platform for the full range of fulfilment options.  That is actually a pretty big deal if you think about the implications beyond just same day delivery. Look for other retailers to respond to Target’s actions and as a supplier keep this in mind as you continue to reevaluate your omnichannel resources.

Source: Kantar

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