More Ship-From-Store Deliveries For Target

There is so much that store retailers are doing online to compete with web-based retailers like Google and Amazon. Target has made strategic improvements to its' e-commerce and the numbers show it. Yet, it is doing something that web retailers can't do, which is utilize their physical stores for shipping.

Internet Retailer reported how Target is now planning to expand its' ship-from-store capabilities, as second quarter sales have thrived. The same time last year, Target's e-commerce accounted for only 2.2% of its' overall sales, versus 2.7% in 2015. This doesn't appear like much, however, it equates to an almost $100 million jump from last year, resulted in increased web sales of 26.1%. With all of the online growth, Target is setting itself to triple the number of stores that will fulfill online orders in the second half of the year from 140 to 450, more than likely to gear up for the holidays.

“Ship-from-store capabilities allow us to balance inventory across the network, leverage the capital and labor already in our stores, and reach guests more quickly", said Target CEO Brian Cornell. Store shipping allows products to be sourced from any store, but get it to the customer in the same request time frame. A few more duties are added to the retail clerk to get items picked, packed, and shipped out. Speed is the element that Target will benefit from the most, adding the versatility that satisfies customer delivery needs, even with same-day delivery. Shipping from stores within a close radius makes last-mile delivery execution easy. This could be an underlying driver for Target.

Macy's is like Target, yet the retailer since last year has made a strong push to make ship-from-store delivery a core service product. However, Macy's is out front primarily with same-day delivery from its' stores. Prior to the holiday season last year, Macy's launched same-day delivery in 8 major US cities, including San Francisco, San Jose, Los Angeles, Houston, Seattle, Chicago, Washington DC, and New Jersey. Customers can get same-day delivery with Macy's for all online orders placed daily by 1pm and by 11 am on Sundays. Now, the popular retailer is expanding into 14 new markets this year, making its' span larger than Amazon.

Target already works with Google Express in several cities to handle its' fast online pick up from stores. The question is will it heavily expand like Macy's? Increased online sales show that Target could go in that direction. Same-day delivery works with volume and it would fit, as Target is just about everywhere in the US. Nationwide retailers like Ace Hardware and Petco have also jumped into the race of same-day delivery. A same-day courier like A-1 Express is ideal for brick-and-mortar retailers to thrive and do it quickly. A-1 Express has a national footprint and is capable of implementing same-day solutions fast. The Dallas Courier is equipped to handle robust delivery programs.

If Target focuses on 2-3 day, ship-from-store options for some of the market, the other market of shoppers that enjoy fast, convenient delivery will need Target's attention too. As companies like Google and Amazon expand online to meet these customers at the door with same-day delivery, Target knows it must venture out farther with same-day services in order to continue growth.

Reference: 8.19.15, www.internetretailer, Matt Lindner, Target goes full speed with ship-from-store