Target is moving forward with its plans to add fresh and frozen grocery items to its Order Pickup and Drive Up services.
About 750 produce, dairy, bakery, meat and frozen items have been added to same-day fulfillment services. After piloting the expanded services in the Twin Cities and Kansas City markets, Target is bringing them to more than 400 stores in the Midwest by the end of June. Over 1,500 stores will offer the new categories by the holiday season.
The retailer had put the brakes on its implementation during the spring to fulfill the unexpected demand prompted by COVID-19.
“During a time when even more people are looking for different ways to get the items they need, we’ll continue to invest in making Target the easiest and safest place to shop,” said John Mulligan, Target’s chief operating officer, in a statement.
Same-day services are big business for Target, which has been leveraging its store fleet to give it an advantage over Amazon. Not only does it speed up its fulfillment capabilities, but it also cuts down as costs, with its Drive Up and Order Pickup services 90% cheaper than warehouse fulfillment.
Target’s addition of fresh and frozen foods is yet another way the retailer can accommodate the new consumer behaviors that have emerged as a result of COVID-19, noted Amit Shah, chief strategy officer at digital commerce platform provider VTEX. “[Retailers are] realizing that even after social distancing restrictions are lifted, the new 'click-and-collect' model of shopping is ultimately what most consumers deem convenient and what meets their levels of comfort when it comes to interacting with others,” he said to RIS.
If Target can continue to maintain inventory levels and make it easy for consumers to order online, they’ll be able to create a successful order fulfillment loop from their online store, he noted.