Growing competition: Target’s push to speed up delivery stems in part from growing competition from many retailers such as Amazon, which recently expanded the reach of its Buy with Prime service that allows other merchants to leverage the retail giant’s fulfillment network to offer shoppers free delivery (as fast as the next day) and easy returns.
- Shopify also recently rolled out its own Shop Promise service that guarantees next-day and two-day delivery.
- Retailers can leverage companies like Instacart and DoorDash to offer consumers quick delivery.
The big takeaway: Target is demonstrating confidence in its strategy, despite several near-term headwinds.
- While the retailer will likely face some near-term challenges due to consumers pulling back on discretionary spending and the “slower-growth new normal” for ecommerce, its investments to ensure that it can meet or exceed online shoppers’ expectations will pay off over the long term.
Go further: Read our report The Future of Last-Mile Delivery, which explores the role of companies such as Instacart and DoorDash in helping retailers compete on delivery.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.