Target Looks to Win Last-Minute Shoppers

Target is making it easier for last-minute shoppers to get curbside pickup or delivery of Christmas gifts and groceries. 

With many Christmas shipping cutoffs passed, Target is making its contactless pickup and delivery services available until 5 p.m. on Dec. 24. 

"Target teams across the country are ready to help guests get their last-minute items safely and easily," said Mark Schindele, Target's chief stores officer. "All season long, our nearly 1,900 stores have been delivering holiday joy to our guests no matter how they want to shop, and we've dedicated even more team members to our same-day services to make sure guests can get their online orders in plenty of time to celebrate."

This year, Target has expanded the number of products available via its e-commerce services, including:

• Target's free, contactless Order Pickup and Drive Up services offer a broad assortment across the store, ranging from gifts and décor to place settings and fresh groceries — ready within hours. Same-Day Delivery with Shipt also offers thousands of products, including groceries, apparel, cleaning supplies and essentials.
• Double the Drive Up parking spaces from last year. Drive Up, Target's highest-rated service, allows consumers to shop for thousands of items via the Target app and have them brought directly to their cars within minutes of arriving at the store. New this holiday season, Target doubled the total number of Drive Up spots — adding nearly 8,000 more — making it easier and faster for guests to pick up their orders.
• This holiday, twice as many Target employees will be focused on delivering same-day service than last year. Shipt also added 150,000 shoppers this season so even more same-day delivery windows are available for guests with last-minute gift lists.

In November, Target said food and beverage sales, along with e-commerce, helped drive year-over-year sales growth of 21.3% in the third quarter of 2020.

Food and beverage sales growth was in the “high teens,” the retailer said, while digital comparable sales posted a 155% increase in third quarter, among the highlights of Target’s financial results. Total revenue reached $22.66 billion driven by sales growth of 21.3% and an 18.1% increase in other revenue. Store comparable sales increased 9.9% year over year.

Operating income was $1.9 billion in third quarter 2020, up 93.1% from $1.0 billion in 2019.

During the the quarter, more than 95% of the retailer’s sales were fulfilled by stores, with basket size increasing by 15.6%, and traffic by 4.5%. The retailer also reported gains on services related to e-commerce, with Shipt deliveries growing by nearly 280%, and same-day order pickup growing by more than 50%. Same-day drive up delivery increased by more than 500%.

Target celebrated the one-year anniversary of its loyalty program, Target Circle, in November by offering its nearly 80 million members more ways to save this holiday season. Target also said that it is embarking on a "strategic, long-term partnership to transform the beauty landscape" by installing Ulta Beauty shops in Target stores. The “shop-in-shop” concept will offer established and emerging prestige brands online and in at least 100 select Target locations nationwide beginning next year. This is the first time that Target will offer prestige beauty brands, a major move for the company.

Minneapolis-based Target Corp. is No. 7 on The PG 100, Progressive Grocer’s 2020 list of the top food and consumables retailers in North America, with more than 1,900 locations.