Target's next-day delivery service, Target Restock, is now available nationwide. The program, which restocks household goods, is free for all Target REDcard purchases and for all other consumers the cost is $2.99, opening up faster delivery service to a much broader audience.
Target restock will now reach 75% of the population, according to the company's corporate blog. Shoppers can pick from essentials such as paper towels, baby food, laundry detergent, etc. and will have next day delivery if items are ordered by 7:00 p.m. Items are limited to filling up a box weighing 46 lbs., equivalent to about one shopping cart. Target will be filling orders at local store locations.
Target will continue to partner with Shipt, as well as a new order pickup service, Drive Up, in order to get purchases to guests faster.
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Howard Schneider, VP of loyalty strategy at Kobie Marketing, says that Target's move to take the platform national is a reaction to Amazon Prime and the race to win over customer loyalty.
"With its main purpose being to eliminate customer pain points, Target’s new platform is making life more convenient for customers which is a key driver of brand loyalty," Schneider told FierceRetail.
Plus the zero membership fee gives Target a major advantage over competitors, especially as Prime membership fees continue to rise and become a barrier for consumers.
Still, Schneider notes that Target’s main loyalty program remains centered around the Red Card debit or credit card. So while the company is making changes to the program, it is limited to card holders only.
"Target has piloted a number of loyalty concepts, and Restock, while not a loyalty program per se, provides an experiential component that can drive loyalty by making customers’ lives easier," he said. "In order for Target to cover all of its bases and stand out among competing programs, it needs to work toward developing a more broad-based, tender-neutral program from which all customers can earn and receive benefits."
Overall, Schneider sees Target's move as a positive one as it is attempting to broaden its loyalty market and it seals the retailer's place in the market of instant gratification.
"Taking the concept of the Target Run and expanding it to include digital 'runs' puts Target in a great position. Overall, this is a move in the right direction for Target," he added.