US retailer Target are the latest big name brand to add a delivery capability to improve and expand their delivery capabilities. This new venture would appear a direct result of Amazon‘s ever increasing delivery capability which has prompted large retailers across the West to up their offering to consumers.
To achieve their goals, Target have agreed to acquire Grand Junction, a transport technology company and the acquisition will also accelerate Target’s investments and ongoing efforts to transform its supply chain as well as delivery propositions.
Target’s next day delivery service known as ‘Target Restock’ was launched to customers in selected areas in June and is somewhat similar to Amazon Pantry with a flat delivery fee of $4.99 per box. Unlike Amazon Pantry, there is no annual subscription – you can only use Pantry if you subscribe to Prime.
Target have also been working with Grand Junction on a same day delivery trial from a New York store which would roughly equate to Amazon’s Prime Now offering.
Here in the UK we’ve seen many supermarkets upping their delivery propositions including most recently Sainsbury’s with their 30 minute Chop Chop click and collect service in Pimlico.
Delivery whether it be convenience with lockers or click and collect or speed including next day, same day or one hour deliveries are headline grabbers but they mean much more to the retailers. Amazon don’t offer these service to make money, they offer them to tie consumers into Amazon Prime as an incentive to put more of your spend through their platform. Other retailers mimicking Amazon’s delivery capabilities are doing so for exactly the same reason – if you use Target when you run out of household essentials you’re more likely to use them for your regular shop just the same as those buying tonight’s dinner on Prime Now are likely to go shopping on Amazon again tomorrow.
