USA TODAY International Edition
Target to highlight ease of shopping, exclusives
Deals and diversity among retailer’s plans this holiday season
Target is going to amp up the shipping wars this holiday season, fighting back against Amazon and other online retailers by extending the time in which customers can receive free deliveries.
It’s all part of a strategy that includes making shipping easier and offering more exclusives and deals to try to make its discount stores top destinations during the all- important season.
“We know how stressful the holidays are for the U. S. consumer. So how do we make it really simple, really easy, whether they are shopping in store or online, to meet their needs during the season?” said Target CEO Brian Cornell, meeting with reporters. “We’ve got to find ways to break through in this environment.”
Target plans to make a special effort to reach out to diverse groups of potential customers to make sure they get the message.
When it comes to shipping, the chain is putting a focus on enabling customers to order online, then pick up their purchase at a store. Of all online holiday orders made with the Minneapolisbased retailer last year, 35% were picked up at an actual store. The company will emphasize the convenience of being able to order a gift online, and then head to one of its 1,800 locations to pick it up.
“We spent a lot of time over the last nine months ensuring that from an order pickup standpoint, we’re at our best during the holiday season,” Cornell said. To make sure all goes smoothly, the company has pinpointed teams to focus on the process, “making sure that when our guest comes in, that item has been picked, that order is correct, and it’s available as quickly as possible.”
In the age of Amazon, shoppers are increasingly expecting to get what they order fast and at little to no cost. A survey released Tuesday by JDA Software found 56% of consumers said cost was the top consideration when ordering a delivery online, and 25% said they don’t shop anywhere they can’t get complimentary shipping.
In response to such demands, roughly 60% of retailers have said they will offer free shipping and free returns this holiday season, according to a holiday survey from consulting firm PwC. Target is among them, extending its free shipping period by a week to allow those who order online to get the package delivered at no cost through Jan. 1.
And it is boosting the number of stores that will function as shipping centers from more than 460 in 2015 to more than 1,000 this year, potentially shrinking the time it takes for customers to receive their purchase.
Shoppers have grown used to holiday bargains, often waiting for a sale before opening their wallets. Target is repeating its “10 days of deals” for the second year in a row. For the first time, customers will also be able to get $ 10 off $ 50 items in a particular category — clothing, groceries, accessories — that changes every week. That offer kicks off next month.
Target is also doing more to appeal to a wider array of customers, doubling the amount of ethnically diverse dolls for sale and increasing by 67% the amount it spends for marketing on Spanish language TV.
Increasingly, Cornell said, Target shoppers are “a Millennial customer. More and more it’s a Hispanic guest. And we’re just trying to make sure we’re connecting with the guest we serve.”