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Target expands its Shipt and Drive Up services across the Midwest and Southeast

Target this morning announced it’s expanding its same-day shipping and pickup services, Drive Up and Shipt, across the Midwestern U.S. and the Southeast. The expansion will bring Shipt, its Instacart competitor for same-day grocery delivery and pickup, to more than 135 markets in the U.S. by the end of this month. Meanwhile, Target’s Drive Up curbside pickup service will reach more than 600 stores in 20 states this week, as a result of the expansion. The news follows on Target’s earlier commitment to expand these services to stores nationwide by the 2018 holidays. In total, the retailer says these current expansions will bring the shipping and pickup services to “tens of millions” of Target shoppers. The company also offered a brief update on its other delivery and pickup services, Target Restock, a next-day essentials delivery service, and delivery of store purchases, which is available to select stores in urban markets where hauling home larger purchases without a vehicle is difficult. Restock will reach more than 135 markets by the end of June, allowing Target online customers to stock up on household items like laundry detergent, trash bags, diapers, packaged foods, beauty and health needs, and more, then take delivery the next day. The service competes with Amazon’s Prime Pantry, which quietly introduced a $4.99 monthly subscription fee earlier in 2018 for Prime members who don’t want to pay the otherwise $7.99 flat shipping fee on their orders of $40 or more. Target Restock, however, became free for Target REDcard purchases and $2.99 for all other orders back in May, undercutting Amazon. Meanwhile, Shipt and Drive Up’s availability will often overlap as the two expand to Target stores across the U.S. Drive Up is the newer of the two, allowing customers to place orders in the Target app, then pickup in 2 hours or less. The service was piloted in Target’s home market of Minneapolis-St. Paul, then rolled out to nearly 270 stores across Florida, Texas and the southeast in April

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Target expands its Shipt and Drive Up services across the Midwest and Southeast

Target this morning announced it’s expanding its same-day shipping and pickup services, Drive Up and Shipt, across the Midwestern U.S. and the Southeast. The expansion will bring Shipt, its Instacart competitor for same-day grocery delivery and pickup, to more than 135 markets in the U.S. by the end of this month. Meanwhile, Target’s Drive Up curbside pickup service will reach more than 600 stores in 20 states this week, as a result of the expansion. The news follows on Target’s earlier commitment to expand these services to stores nationwide by the 2018 holidays. In total, the retailer says these current expansions will bring the shipping and pickup services to “tens of millions” of Target shoppers. The company also offered a brief update on its other delivery and pickup services, Target Restock, a next-day essentials delivery service, and delivery of store purchases, which is available to select stores in urban markets where hauling home larger purchases without a vehicle is difficult. Restock will reach more than 135 markets by the end of June, allowing Target online customers to stock up on household items like laundry detergent, trash bags, diapers, packaged foods, beauty and health needs, and more, then take delivery the next day. The service competes with Amazon’s Prime Pantry, which quietly introduced a $4.99 monthly subscription fee earlier in 2018 for Prime members who don’t want to pay the otherwise $7.99 flat shipping fee on their orders of $40 or more.

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Target debuts same-day delivery for in-store purchases in some urban markets

Target wants to make it easier for customers in urban markets to shop its store and get their hauls home, without having to lug their bags onto the subway or other public transit. These customers may skip buying heavier items like 12-packs of soda, big bags of dog food, gallons of water, new bedding sets and other things they can’t easily carry for long distances. Instead, they’ll place those orders online — and often with Target competitors like Amazon. But now, Target will allow urban customers to shop in-store, and have their purchases delivered to their home that same day. The service makes sense for Target stores in cities, where there aren’t often parking lots available to shoppers, and whose customer base tends to ride the subway, bus or train, or bike or walk home. When they want to buy more than they can easily carry, they tend to order a taxi or an Uber to get their purchases home. That’s why Target is rolling out this home-delivery option only to select locations. The feature will debut in nearly 60 stores in five major cities — Boston, Chicago, New York City, San Francisco and Washington, D.C. — by the end of this month, the company says.  To take advantage of the service, customers will shop as usual and check out at the register. There, they’ll tell the cashier they’d like to take home delivery and pay the $7 flat fee. (Cheaper than some cab rides, Target notes). Customers then choose their two-hour delivery window and provide their address along with other relevant delivery information. When the process is complete, they’ll leave their purchases at the store, and return home to accept delivery during their window. Oversized items, like furniture, will cost $25 for delivery

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Target tests a new loyalty program with 1% back, Shipt discounts and free next-day delivery

Target has begun to test a new loyalty program, “Target Red,” that combines discounts on delivery with cash back on later purchases. The program will serve as an alternative to the existing REDcard program which requires customers to sign up for a Target credit or debit card. With Target Red, customers instead earn 1 percent back on purchases that they can redeem on their next visit, as well as receive 50 percent off a Shipt membership, and free next-day delivery through Target Restock. The retailer had  acquired same-day delivery service Shipt in December for $550 million, and has continued to operate it as usual, after adding Target to the list of available stores, of course. It’s also now helping to push customers who were shopping rival grocers on Shipt over to Target by pricing its own items the same as they are on the Target website, while others remain marked up. Meanwhile, Target Restock is the retailer’s own entry in next-day delivery, which allows consumers to fill a box with everyday essentials – like household goods and pantry staples – and take delivery for $4.99 per box. (For comparison, Prime Pantry is now $7.99 per order, unless paying a $4.99 per month membership, which makes order over $40 ship free.) However, Target Restock is only available in select metros at this time – following an expansion last fall, it now reaches over 70 million people,  Target said. Target Red loyalty program members will be able to waive that $5 delivery fee on Restock, and can take half off the cost of the typically $99 per year Shipt membership, too. More importantly, perhaps, is the one percent back, as a way to lure in shoppers who won’t sign up for REDcard. Target REDcard is already quite popular – as of the company’s latest earnings, it accounts for 24 percent of sales, with 12.7 percent from Target Debit Card, and 11.4 percent from Target Credit cards. But those figures aren’t climbing much these days. That’s where Red comes in.

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