Target grocery pickup service expands nationwide – TechCrunch
target announced today that its grocery collection service is available nationwide. Launched in the Midwest earlier this summer, Target announced it would soon roll out grocery collection services in the US and reach 1,500 stores in a few months. Today Target achieved that goal, which is nearly 85% of its locations.
Although the retailer had already offered grocery delivery via Shipt and both online order pickup and a same day curb service called Drive Up, it was not yet offering grocery collection due to cold food storage issues . However, modifications and newer extensions to the pick-up area in some Target branches have fixed the problem.
To advance its plans, the retailer had to work around issues related to the coronavirus outbreak, which had delayed Target’s plans to completely remodel hundreds of stores. In stores that had not yet been remodeled, a small construction project enabled temperature-controlled storage of the order pick-up area.
The new pick-up service for groceries does not initially offer all fresh and frozen items from Target. Instead, Target provided the most popular 750 fresh and frozen items in addition to the thousands of non-perishable items that could already be ordered. These newly added items include produce, dairy, baked goods, meat and frozen foods. The company said it imposed the restriction based on the way customers use the grocery pick-up service to buy essentials between major trips to the store. However, it is unclear whether this will continue to be the case in the coronavirus era, when shoppers are now visiting stores less frequently but stocking up in larger quantities when they do.
In both Target and Walmart results announced this week, retailers reported an increase in basket size related to this trend. The target, such as the reported customer basket size, increased 18.8% in the second quarter as customers searched for more items in their target runs.
If this trend continues beyond the pandemic, retailers may need to consider equating picking up online orders to shopping in-store in terms of product selection.
In addition to fresh and frozen foods, Target shoppers can also choose from more than 250,000 general goods that can be picked up within the same grocery order in different categories such as household, clothing, staple foods, and more. Buyers do not need to create separate “shopping carts” in the Target app, nor does the Target website or app separate grocery purchases from other online purchases such as Walmart.com and its app.
However, the option to create a “Drive Up” order is still only available in the mobile app. On the Internet, you can only create an order and pick it up at the store, or select delivery.
With its expansions, the goal is ahead of schedule for grocery collection. The retailer originally said it would hit 1,500 stores by the US holiday season. The company did not offer a time frame for grocery collection from each store.
Online groceries have fueled both Target and Walmart’s quarterly sales, both retailers reported this week. In Target’s case, same-day services accounted for the bulk of digital growth, with 273% growth across all services. Roadside pickup increased 734% while Shipt grocery deliveries grew 350% in the quarter.