Target’s investment in store pickup for online orders is paying off

Digiday 10 Jan 2019 06:22

Alongside disappointing holiday sales reports from Macy’s and JCPenney, Target is a bright spot among legacy retailers. The retailer reported 5.7 percent same-store sales growth for November and December — a jump from 3.4 percent for the same period in 2017. One contributor to that growth was in-store pickup for online orders, a way the retailer has held its own against increasing competition from Amazon.

The company handled 60 percent more items through online order pickup, “Drive Up” (an option where customers drive to designated delivery pickup points at Target locations) and ship from store compared to last year, chief operating officer John Mulligan said in a company blog post Thursday. According to the company, digital sales growth of 29 percent in the November-December period was driven entirely by store-fulfilled digital sales, and based on 2018 results, Target is on track to grow digital sales for a fifth consecutive year.

Juozas Kaziukėnas, CEO of e-commerce research firm Marketplace Pulse, said Target’s store pickup options for online orders make sense for customers outside of U.S. major urban centers, where customers are accustomed to driving to stores to pick up items. Target’s online pickup services helped rushed holiday shoppers wanting to save time on their last-minute holiday purchases, he added.

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TargetJuozas KaziuknasNeil SaundersZebra TechnologiesJohn Mulligan
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