Target's Curbside Drive Up Service to Offer Starbucks and Returns

Rhea-AI Summary

Target Corporation (NYSE: TGT) announced enhancements to its same-day pickup services, set for fall 2022. The improvements include options for customers to add a Starbucks order and make returns using the Target app. Target aims to leverage its nearly 2,000 stores as fulfillment hubs, with more than half of its digital sales coming from same-day services like Order Pickup and Drive Up. Additional features include expanded 'backup item' functionality for a wider range of categories, enhancing customer convenience and satisfaction.

Positive

• Digital sales have more than doubled in the last two years.
• Same-day services now account for over 50% of digital sales.
• Expanded 'backup item' functionality ensures 98% successful substitutions for unavailable items.
• Investment in fulfillment experts has tripled over the past two years.

Negative

• None.

MINNEAPOLIS, Feb. 23, 2022 /PRNewswire/ -- Target Corporation (NYSE: TGT) today unveiled plans to continue enhancing its fast-growing, same-day pickup services in fall 2022. As part of Target's strategy to build on its easy, differentiated shopping experience, the company will begin testing the option for guests in select markets to add a Starbucks order or make a return within Target's free, contactless curbside service through the Target app. Target will also expand its "backup item" functionality in even more categories to allow guests to pick up everything on their lists.  

These latest enhancements will build on Target's strategy of using the company's nearly 2,000 stores as fulfillment hubs, powering its suite of contactless same-day services. As the company's digital business has more than doubled during the last two years, Order Pickup, Drive Up and Same-Day Delivery with Shipt have accounted for more than half of those sales.

"Our guests continue to tell us they love the ease and convenience of Drive Up, and they have been asking us to add even more of the Target experience to the service. Adding a Starbucks order and easy returns, while expanding our backup item options, will give guests even more of what they love about shopping at Target, quickly and easily," said Mark Schindele, Target's chief stores officer. "Ongoing investments in our same-day services have built trust and relevance with our guests, while meeting their needs – no matter how they choose to shop."

Everything Guests Need in the Drive Up Lane 
When Target surveyed guests, placing a Drive Up order for Starbucks was a top request. When the new feature becomes available, guests will indicate they're "on their way" to the store via the Target app and will have the option to place an order from the Starbucks menu. Upon arrival, a Target Drive Up team member will deliver their full order to the guests' car. Similarly, for the return process, guests will be able to initiate a return via the Target app and complete it at the Drive Up lane.

With expanded "backup item" functionality, guests will be able to select from a wider assortment of categories – including beauty and household essentials – to designate secondary backup items for their Drive Up and Order Pickup orders, in the event their first-choice items are unavailable. In the months since the option rolled out for food and beverage orders, Target teams have successfully substituted backup items 98% of the time, helping guests pick up even more of what they need – including high-demand items.

The ability to make returns and add a Starbucks order via Drive Up, along with expanded "backup item" options, add to the growing list of innovations in same-day services Target implemented last year. Other innovations and functionalities include Adult Beverage pickup; "Shopping Partner" – a feature that allows guests to send someone else to pick up their Drive Up or Order Pickup order; "Forgot Something" – which allows guests to easily order forgotten items after a Drive Up or Order Pickup order has been placed; plus more Shipt shopping personalization.

Team Members Bringing Same-Day Services to Life
Target continues to invest in the team members who bring these services to life for guests every day through continuous trainings, easy-to-use technology and career development opportunities. The retailer has tripled the number of store fulfillment experts over the past two years and added backup training for all new store team members in same-day fulfillment.

About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at more than 1,900 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website and press center and by following @TargetNews.

 

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SOURCE Target Corporation

FAQ

What new features is Target introducing in its pickup services?

Target will allow customers to add Starbucks orders and make returns via the Target app in its pickup services.

When will Target's new pickup service enhancements be available?

The enhancements are set to be tested in fall 2022.

How have Target's digital sales changed recently?

Target's digital sales have more than doubled over the last two years.

What percentage of Target's digital sales come from same-day services?

Same-day services account for more than 50% of Target's digital sales.

How does Target ensure customer satisfaction with unavailable items?

Target's expanded 'backup item' functionality allows for successful substitutions 98% of the time.