Will Target Restock undercut Amazon’s Prime Pantry?
The Target Restock program, whereby shoppers can order a wide variety of consumer and store brand staples including baby food, household cleaners, laundry detergent, paper towels and peanut butter and receive them the next day, just became a better deal for the 75 percent of the population within reach of the service across the U.S.
Yesterday, Target announced that REDcard holders would now have their Restock boxes delivered the next day for free. For everyone else, the price of delivery dropped to $2.99 from $4.99.
“Target Restock is another way we’re making life easier for our busy, budget-conscious guests,” said Dawn Block, senior vice president of digital at the retailer. “Our guests love the speed and convenience of the service. And now that Target Restock is an even better value, we think the service will become increasingly popular.”
Restock is Target’s answer to Amazon.com’s Prime Pantry program. The Amazon program, which was launched in 2014, recently switched from charging $5.99 for up to 45 pounds of eligible items inside each box to a $5 monthly subscription with no delivery fee added. Members have no limit on the number of eligible orders they can place each month.
Target’s Restock program may be looking to attract the individuals (number unknown) who chose to opt out of Amazon’s program when it announced the monthly subscription requirement. Amazon customers who are not subscribers to Prime Pantry pay $8 per box for shipping.
Each Target Restock box also holds up to 45 pounds. The retailer is offering $5 off an order of $50 to first-time users as an added incentive to test the service. Customers who place their online order by 7:00 p.m. Monday through Friday receive delivery from a nearby store the next day. The service is also voice-enabled using Google Home or a mobile device with the Google Assistant app.
- Target Restock
- Target Restock Next-Day Essentials Delivery Now Available Nationwide for $2.99 – and Free With REDCard – Target
- Amazon shifts to a subscription model for Prime Pantry – RetailWire
- Target sees stores as key to meeting its distribution challenges – RetailWire
- Target to make same-day delivery push with Shipt acquisition – RetailWire
DISCUSSION QUESTIONS: Does Target Restock along with the other steps the chain has taken — raising associate pay, rolling out new store brands, opening small stores, remodeling big boxes, acquiring Shipt, expanding Drive Up, et al — make the retailer more competitive with Amazon, Walmart and other rivals? What are the biggest challenges that Target needs to address?