Target To Expand Same-Day Delivery

Target has its own bag of tricks to compete with Walmart and Amazon.

Target is moving towards expanding their same-day delivery service. The company has performed reasonably well during the last year, and has maintained growth, at least half of which was due to same-day fulfillment.

Target offers same-day fulfillment through various means including order pickup, drive-up, and delivery through Shipt. Target’s success with their same-day delivery system has helped them remain competitive during a very difficult time for retailers. The old way of doing retail simply isn’t working so well anymore, and Target is well prepared to take on this shift in the retail industry. Should these efforts at expansion work, Target should remain competitive even as Amazon and Walmart shift to one-day free shipping.

Target has yet to make any moves that seriously mirror Amazon and Walmart’s recent offers, but same-day fulfillment is a generally safe bet. Target isn’t operating in as large a market as the other two, either. Amazon will rely on third-party sellers, which Target will not, but keeping up the pace will be a logistical challenge in any case.

According to Target’s Q1 earnings report, the company made $17.4 billion in sales. Target was up 5.1% year over year (YoY), but the most growth took place on the digital side of the business, where the company was up 42% YoY. This is an improvement on the previous quarter’s 31% growth YoY.

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5 years ago
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