Target has plans to expand its fresh grocery pickup service, which is now in limited locations. The company intends to have this service available at more stores across the country by the end of the year.
The Planned Expansion
Target estimated that by the end of June, it would have more than 400 stores with the fresh grocery pickup service. By the holidays, this figure should reach 1,500 stores.
The program was originally piloted early on in March, but Target decided to temporarily pause it so the company could instead focus on responding correctly to the pandemic. As of May, Target had restarted the pilot in the Twin Cities and had already extended it to Kansas City.
About the Fresh Grocery Program
The fresh grocery program is part of the in-store and curbside pickup services. It is entirely free and does not have a minimum order. The fresh grocery pickup will include more than 750 products, spanning frozen, meat, produce, bakery, and dairy. This includes products from the Good & Gather private label and Boar’s Head deli line.
This is in addition to the over 250,000 products that Target already offers for pickup, including non-perishable grocery products, home goods, and apparel.
The Goal and Reasons for the Expansion
Shoppers have been vocal about wanting a fresh grocery pickup option to supplement the other items available via pickup, so Target predicts success with the program. This should help Target maintain its status as a one-stop shopping destination.
In addition to input from customers, the data confirms that customers are increasingly using e-commerce. The most recent financial quarter included a boost to e-commerce sales of 141 percent.
The idea is that by offering fresh grocery products via the convenient pickup service, shoppers will enjoy the convenience and spend more money while deepening loyalty.
Target customers can also enjoy the delivery of fresh groceries via Shipt, which is its e-commerce service. However, during the pandemic, more people seem to prefer pickup over delivery. As of mid-June, Nielsen data indicated that grocery pickup sales were up 81 percent, while grocery deliveries were only up 33 percent.
The Future of the Service
Experts are curious to see how aggressively Target markets this particular service. Some argue that Target has the potential to become one of the primary destinations for grocery shopping, given its increasing selection and great prices. Of course, this market is already highly competitive, so Target may use this offering as a way to increase sales slightly.
Source: https://www.retaildive.com/news/target-will-roll-out-fresh-grocery-pickup-nationwide/580561/
