Target Is Following Walmart Into This Huge Market Opportunity
Target (NYSE: TGT) shares have surged in recent years, and one strategic decision is a major reason why.
The big-box retailer has invested heavily in same-day fulfillment service, including Order Pickup, Drive Up, and same-day delivery with Shipt. Sales from same-day fulfillment services jumped 90% last year, and accounted for three quarters of its 29% comparable digital sales growth.
Those services have emerged as a competitive advantage for the retailer, separating it from flailing mall-based chains and department stores and warding off competition from online retailers like Amazon. Not surprisingly, Target is investing further in the channel, as it's clearly resonating with customers. It was a big reason why digital sales jumped 141% in the pandemic-stricken first quarter -- in fact, same-day services jumped 278% in the period. Now Target is stepping up its offering by making fresh and frozen groceries available through Order Pickup and Drive Up.
Source Fool.com
