Target (TGT) Making Money amidst the Amazon Apocalypse

An obvious added benefit to Skip-the-Line is keeping ship-to-store customers out of register or service-counter lines.

Moreover, an associate with a tablet could reduce lines by asking customers if they want to pay via Skip-the-Line. Therefore, associates will spend all their time stocking and helping customers rather than standing behind a register.

Additionally, Skip-the-Line could make it faster, easier, and cheaper for Target to open new stores. To clarify, Target might open new stores with fewer registers and no customer service desk.

An obvious long-term goal of the Skip-the-Line is stores without cash registers. Thus, Target could open up in empty stores, buyout smaller chains, or open pop-up stores in malls and other retailers’ locations instantly.

A Target pop-up store inside a Kroger supermarket, a mall, or even a subway station for example. Obviously, Skip-the-Line will enable to open pop-ups all over the place without registers.

Another use for Skip-the-Line will be to allow delivery drivers to collect payment directly from customers. To explain, the driver will carry a Skip-the-Line device that will collect payment from the customer before delivery.

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Target (TGT) Battles for Survival

The goal of Smartly; however, is also to counter Amazon (NASDAQ: AMZN). Target’s management hopes Smartly will lure in customers by offering prices lower than anything Amazon can provide.
Few retailers are in more danger from Amazon than Target. Amazon competes for Target’s core customer base; the urban and suburban middle class, in particular.
For example, Target’s target customer is a 35-year-old suburban soccer mom. Unfortunately, that soccer mom is the person most likely to belong to Amazon Prime.
An obvious use of Smartly is to get people under 30 (Millennials) used to shopping at Target. Target hopes to turn those Millennials into loyal customers by the time they have kids.

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