Target will have to up its delivery game dramatically just survive in that retail environment. Consequently, Target will need to spend a lot of money it lacks just to stay competitive.Read more
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.Read more
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.
Some of the biggest brands out there made the move to online retail a good few years ago, and although the infographic created by Red Brain shows they have had some incredible sales, it is nothing compared to what their sales are in their physical stores.
Although people appreciate a brand being online, they are not ready to see their favourite brands disappear from the high streets completely.Read more
A likely outcome of this is the only CDs left will be those from superstars with guaranteed audiences; such as Beyonce and Taylor Swift. Swift did sell over 500,000 CDs of her Redemption album. That is nothing compared to digital; where Swift sold 925,000 copies of her Reputation album in three days last year.Read more
Teaming up with high-end grocers like Lidl and Trader Joe’s for Shipt delivery is a smart move for Target. Other logical moves will to add brands like CVS, Walgreens, Home Depot, Lowe’s, Rite Aid, Albertsons, Nordstrom, Aldi, Trader Joes, Safeway, Publix, and Best Buy to the Shipt ecosystem.
More importantly, Target is well positioned to cash in on today’s retail environment and the transition from brick and mortar to delivery. If you want to profit from the growth of grocery delivery, Target is one of your best bets.Read more
Even if Supervalu keeps operating the distribution centers its new customer might be Amazon or Instacart.
A strong possibility is that Supervalu will get out of brick and mortar supermarkets and concentrate on selling groceries to delivery services. Its’ network of distribution centers is well-positioned for that eventuality.
Supervalu’s financials explain why Jeff Bezos is so interested in the grocery business. Grocers like Supervalu have a very strong cash flow, and Bezos loves cash.
Likely responses to Walmart’s offensive might be Amazon’s acquisition of a traditional grocer like Safeway or Winn-Dixie, or Amazon or Target partnering with traditional grocers such as Publix. Kroger might respond by buying InstaCart and joining Google Shopping Express.Read more
Currently, I’m leery of both UPS and FedEx because of the danger they are in, in a changing retail market. Threats to these companies abound from both new businesses and new technologies.Read more
The next logical step at Target should be a strategy of acquisition. Other brands are cheap because of the retail apocalypse and Target certainly has the cash.
The best target would be an online retailer or the online operations of struggling brick and mortar retailers. An interesting acquisition for Target would be JC Penney’s (NYSE: JCP) online operations.Read more