Will Target’s answer to Prime Pantry help it outdo Amazon?
Target launched a pilot of its next-day delivery program for household essentials yesterday in the Minneapolis/St. Paul area. Now, the question is whether the program, known as Target Restock, will prove successful in driving increased sales for Target.com.
The pilot program gives shoppers a choice of more than 10,000 everyday items including baby, beauty, household products, personal care, pet and shelf-stable foods. Orders are added to a box that holds up to 45 pounds. Shoppers are updated on how much more room is available in the box as they add items to their cart. Items ordered by 2:00 p.m. are delivered the next day for a fee of $4.99. The pilot will be restricted to REDcard members during its initial phase.
“Target Restock is all about making the Target Run easier — and helping our guests save time in their busy lives,” said Mike McNamara, chief information and digital officer, Target, in a statement. “We look forward to seeing how guests in our hometown market respond to this new offering.”
The mass merchant’s venture into next-day delivery puts it in the same territory as Amazon.com’s Prime Pantry service, which also delivers grocery and household staples. Amazon’s program, which is restricted to Prime members, allows shoppers fill up a box for a $5.99 fee. Members can receive free shipping when they include five qualifying items in their box. The service also allows Prime members to clip coupons on the Pantry page for additional savings. There is a maximum weight of 45 pounds for each box.
Matt Sargent, senior vice president of retail for Magid, told the Star Tribune that his company’s research has found that 57 percent of Target’s regular customers are also Amazon Prime members.
In a recent research note, the paper reported, Mr. Sargent wrote that “Target Restock is squarely aimed at taking share back from Amazon” and that the need for the program “to succeed cannot be underestimated.”
- Target Launches Next-Day Essentials Delivery in the Minneapolis Area with Target Restock – Target
- Target’s next-day essentials delivery service opens to customers in pilot test – TechCrunch
- Target Restock launches this morning in Minnesota – Minneapolis Star Tribune
- Prime Pantry – Amazon.com
- Will next day delivery make Target an omnichannel force? – RetailWire
DISCUSSION QUESTIONS: What do you think Target is likely to learn from the pilot of its Restock next-day delivery program? Do you agree that Restock needs to capture Amazon.com customers to be considered a success?