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Target (TGT) Continues Same-Day Delivery War with WMT & AMZN
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Target Corporation (TGT - Free Report) is leaving no stone unturned to drive its top line and expand customer base. In line with this, the company recently announced plans to launch same-day delivery service in the Texas metro areas of El Paso, Brownsville/McAllen and Lubbock, starting Jun 28, through Shipt.
Thanks to Shipt, more than 3,29,000 million consumers in the region can now get products delivered within an hour. This follows Target’s launch of same-day delivery service in the Chicago metro area, starting Jun 7.
Interestingly, this Zacks Rank #3 (Hold) company is trying to gain customers through its new service offerings. For those opting for the service prior to its launch, the company has announced an annual membership fee offer of $49 instead of the customary $99. Also, with the annual membership, customers can avail free delivery on orders above $35.
Target, which shares space with the likes of Costco (COST - Free Report) , is going the extra mile to provide the same-day delivery option to customers. The company also aims to offer same-day delivery of in-store assortments in most of its stores by the holiday season this year.
The same-day delivery service is expected to be available to 65% of the households (80 million households) in the United States across 180 markets by the end of 2018. Management has also announced plans to include all major product categories at Target for same-day delivery by 2019.
According to Technavio analysts, the same-day delivery market in the United States is set to see a CAGR of 23.2% during the 2018-2022 period. Given the bountiful opportunities in this niche, we expect the company to gain traction in the near term.
Moreover, according to Nielsen and the Food Marketing Institute, although only 23% of consumers in the United States buy groceries online, the percentage is likely to bump up to 70% in the next five to seven years. Thus, it can be assumed that the same-day delivery space will heat up pretty soon and the company is clearly gearing up to make the most of it.
The retail war is heating up with an increasing number of players shifting focus toward minimum delivery time. Almost all retail giants are pumping in more money and are either acquiring or partnering with delivery service companies for same-day delivery to stay ahead in the race. Target is fast catching up with the likes of Amazon (AMZN - Free Report) and Walmart (WMT - Free Report) in the same space.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Target (TGT) Continues Same-Day Delivery War with WMT & AMZN
Target Corporation (TGT - Free Report) is leaving no stone unturned to drive its top line and expand customer base. In line with this, the company recently announced plans to launch same-day delivery service in the Texas metro areas of El Paso, Brownsville/McAllen and Lubbock, starting Jun 28, through Shipt.
Thanks to Shipt, more than 3,29,000 million consumers in the region can now get products delivered within an hour. This follows Target’s launch of same-day delivery service in the Chicago metro area, starting Jun 7.
Interestingly, this Zacks Rank #3 (Hold) company is trying to gain customers through its new service offerings. For those opting for the service prior to its launch, the company has announced an annual membership fee offer of $49 instead of the customary $99. Also, with the annual membership, customers can avail free delivery on orders above $35.
Target, which shares space with the likes of Costco (COST - Free Report) , is going the extra mile to provide the same-day delivery option to customers. The company also aims to offer same-day delivery of in-store assortments in most of its stores by the holiday season this year.
The same-day delivery service is expected to be available to 65% of the households (80 million households) in the United States across 180 markets by the end of 2018. Management has also announced plans to include all major product categories at Target for same-day delivery by 2019.
According to Technavio analysts, the same-day delivery market in the United States is set to see a CAGR of 23.2% during the 2018-2022 period. Given the bountiful opportunities in this niche, we expect the company to gain traction in the near term.
Moreover, according to Nielsen and the Food Marketing Institute, although only 23% of consumers in the United States buy groceries online, the percentage is likely to bump up to 70% in the next five to seven years. Thus, it can be assumed that the same-day delivery space will heat up pretty soon and the company is clearly gearing up to make the most of it.
The retail war is heating up with an increasing number of players shifting focus toward minimum delivery time. Almost all retail giants are pumping in more money and are either acquiring or partnering with delivery service companies for same-day delivery to stay ahead in the race. Target is fast catching up with the likes of Amazon (AMZN - Free Report) and Walmart (WMT - Free Report) in the same space.
Over the past six months, Target has outperformed its industry. The stock has gained 20.3%, while the industry rose 9.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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