Eye on Retail: Target announces expansion of 'Drive Up' delivery, $12 hourly wage
On the heels of a strong performance sales-wise in its fourth quarter, Target Corp. announced a major rollout of several of its delivery services — including "Drive Up," its fastest delivery option.
The retailer also announced it is raising its minimum hourly wage to $12 this year, part of its previously announced initiative to raise the minimum wage to $15 by 2020. The hike will start with existing associates.
On the delivery front, Target will expand Drive Up to nearly a thousand stores nationwide in 2018. The service, available through the Target app, allows shoppers to have their online orders brought out to their cars by a store associate within a couple minutes after arriving at the store.
In addition, the discounter also announced free two-day shipping on hundreds of thousands of items on Target.com with no membership required — an offer available when guests use their Target REDcard or spend more than $35.
Also, Target will expand its service that lets customers shop select urban stores and have their order delivered the same day for a flat fee. After last year’s successful pilot launch in four New York City stores, Target will roll out the service throughout the year to all stores in the five New York boroughs and select urban locations in Boston, Chicago, San Francisco and Washington, D.C.
Target is also expanding its “restock” overnight essentials delivery service. It will roll out in in 2018 — to 40 markets total, covering nearly three fourths of the U.S. population, by the end of the year.
“We’re always looking for ways to make it easier for our guests to get what they need on their terms,” said Mike McNamara, Target’s chief information and digital officer. “Thanks to investments in our supply chain and digital operations, we’re able use our stores to fulfill guests’ digital orders with flexibility and speed. With recent success, we’re eager to scale Drive Up and other fulfillment options to more guests in 2018.”
Target said it began testing its Drive-Up service last fall in the Twin Cities. With a nearly 10% increase in orders week over week since launch, it quickly became one of the highest rated fulfillment services shoppers in the area, the retailer said. Half of shoppers that tried the service have used it again, according to Target.
The new service has been especially popular among shoppers with small children, with diapers and paper towels among the most ordered items through it. It’s also proven popular for purchases of bulky items, with cases of bottled water and soda, as well as home electronics like TVs, among the most ordered items.
The retailer also announced it is raising its minimum hourly wage to $12 this year, part of its previously announced initiative to raise the minimum wage to $15 by 2020. The hike will start with existing associates.
On the delivery front, Target will expand Drive Up to nearly a thousand stores nationwide in 2018. The service, available through the Target app, allows shoppers to have their online orders brought out to their cars by a store associate within a couple minutes after arriving at the store.
In addition, the discounter also announced free two-day shipping on hundreds of thousands of items on Target.com with no membership required — an offer available when guests use their Target REDcard or spend more than $35.
Also, Target will expand its service that lets customers shop select urban stores and have their order delivered the same day for a flat fee. After last year’s successful pilot launch in four New York City stores, Target will roll out the service throughout the year to all stores in the five New York boroughs and select urban locations in Boston, Chicago, San Francisco and Washington, D.C.
Target is also expanding its “restock” overnight essentials delivery service. It will roll out in in 2018 — to 40 markets total, covering nearly three fourths of the U.S. population, by the end of the year.
“We’re always looking for ways to make it easier for our guests to get what they need on their terms,” said Mike McNamara, Target’s chief information and digital officer. “Thanks to investments in our supply chain and digital operations, we’re able use our stores to fulfill guests’ digital orders with flexibility and speed. With recent success, we’re eager to scale Drive Up and other fulfillment options to more guests in 2018.”
Target said it began testing its Drive-Up service last fall in the Twin Cities. With a nearly 10% increase in orders week over week since launch, it quickly became one of the highest rated fulfillment services shoppers in the area, the retailer said. Half of shoppers that tried the service have used it again, according to Target.The new service has been especially popular among shoppers with small children, with diapers and paper towels among the most ordered items through it. It’s also proven popular for purchases of bulky items, with cases of bottled water and soda, as well as home electronics like TVs, among the most ordered items.