Target lowers shipping threshold to $25

Target (NYSE:TGT) announced it will cut its shipping threshold in half, making the new minimum purchase price $25 per order.

"Lowering the free shipping threshold from $50 to $25 is one more way Target is putting guests first and making it easier for them to shop Target when and where they want," said Jason Goldberger, president of Target.com and mobile. "We saw an enthusiastic response to our free shipping offer over the holidays. Now, whether guests are stocking up or doing fill-in shopping, we've enhanced our year-round shipping offer to be one of the best in all of retail."

Target also offers free in-store pickup for orders made online, with more than 80 percent of orders ready in one hour. In addition, shoppers using Target's REDcard almost always receive free shipping.

The announcement comes on the heels of strong online sales during the 2014 holiday season. Target set a new online sales record on Thanksgiving and Cyber Monday. Overall, mobile accounted for 60 percent of all Target.com traffic. Cartwheel, the company's digital coupon app, also gained 2 million new users over the season.

With the increase in business, Target plans to open two new online fulfillment centers this year in Memphis, Tennessee, and York, Pennsylvania. Last year the company began shipping a portion of orders from stores to improve inventory management.

For more:
-See this A Bullseye View blog
-See this Target press release

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