Target completed 113 store remodels in Q2 on top of the 56 completed in Q1. The remodel project aims to create a platform for Target's fulfillment initiatives and provides a "more inspiring environment that's easier to shop." According to Mulligan, Target continues to see traffic driven incremental sales lift of 2% to 4% in stores after they've been remodeled.
In addition to the remodels, Target has rolled out new workforce tools and technology that allow associates to find and order items on behalf of shoppers and process the sale from anywhere in the sales floor. Target's work on the upstream supply chain is focused on "changes that will dramatically reduce store workload associated with unloading and restocking over the next two years."
3 FULFILLMENT OPTIONS TARGET SHOPPERS LOVE
Target acquired the same day personal shopping service in December 2017 and now it's operating in more than 160 markets and serving more than 1,100 Target stores.
"Over the last year, Shipt's membership base more than tripled while orders, revenue and GMB are two to three times higher," said Mulligan. "While some of this growth is being driven by Shipt's entry into new markets, we’re seeing orders in GMB in comparable markets, meaning markets in which Shipt was already operating a year ago, that are up nearly 100% year-over-year."
Year-to-date the Shipt team has added 19 new retail partners to their marketplace, who operate under 24 unique banners across the U.S., to their marketplace a total of. This is more than double the number of new partners that Shipt added to its marketplace in all of 2017.
DELIVERY FROM STORE
Target's new service in dense urban market stores lets shoppers send their purchases home from the store. They pay a $7 flat fee at checkout and choose a time window for their purchases to be delivered to their door later on the same day.
Delivery From Store is now available in 58 stores across five markets. The average basket size for the service is more than $200, which Mulligan noted is the highest of any service Target provides.
Target’s curbside pickup service allows guests to place orders via the Target app, then have their items brought out to their cars by a store team member. Orders arrive within two minutes of when a guest pulls into the store parking lot.
Target has expanded the service from 50 stores to 800 locations around the country this year so far. Target plans to have this service rolled out to nearly 1,000 stores by the holiday season, and will continue expanding it in 2019.
According to Mulligan Target shoppers love the new service.
"Our most recent Net Promoter Score for Drive-Up is 88, a crazy high number, the highest of any service we provide," he said.