Target's Tech Innovation Center Begins Delivering Results

Target Corporation has become a leader in the retail industry for keeping ahead of the curve. The retailer is now continuing its innovation and investments with the rollout of its Cartwheel coupon platform, expanding its footprint in smaller locations and building on its delivery capabilities.
Target is building the digital acumen of the organization through hiring and collaborations with leading technology partners. Its recently opened Technology Innovation Center in San Francisco provides the opportunity to benefit from technology talent in the area and quickly explore opportunities that can be brought to Target, accelerating the pace of innovation and adoption of emerging technologies and trends.
"We are building the capability to operate stores in smaller spaces, particularly in urban markets," said Kathy Tesija, EVP of merchandising for Target on the call. "We are analyzing results in our first 70 Target stores to understand where in the stores we have the ability to reduce space even more allowing us to further shrink the size of this store format.
The retailer continues to invest to further integrate the shopping experience across channels based on successful results from its team member test of buy online and pickup in-store, moving quickly to begin offering this option for customers in the third quarter.
Team member tests of flexible capabilities will begin later this year, including the ability to deliver online orders from stores as early as same day as well as the ability to pay in one store and pick-up in another. Based on the results of the team member test the retailer will look to move to guest facing tests next year.
In April the retailer launched Cartwheel, a mobile coupon platform on Facebook that has experienced rapid growth. This platform, which immigrates stores and mobile into guest social networks, has seen very high levels of guest engagement.
Among active users more than 50% have completed multiple Carthweel transactions, demonstrating the power of the program to drive continued guest engagement. As expected, customers are searching for deals while they are shopping in stores and redemption rates are higher than 50% for offers downloaded by customers while shopping.
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