Target Corporation (NYSE:TGT) has announced that it is testing a next-day delivery service called “Target Restock”.
Target Restock is a service that will be available to members of the company’s REDcard program. These customers will be able to place orders with the store online and have them shipped to them the next day.
Target Restock will allow customers to fill a single box with households items that they are running low on. This box is then prepared and shipped to the customer for a flat fee. The company says that the box is prepared at its retail locations to allow for the low fee and fast shipping.
The Target Restock service will allow customers to make orders as late as 1:30 p.m. and still have them show up the next business day. The program is currently being tested out by some of the company’s employees at its headquarters in Minneapolis, Minn.
Target Restock will be expanding beyond these tests later this year to allow normal customers to make purchases and receive them the following day. This expansion is set to take place during the summer. At this time, REDcard members living in Minneapolis will be able to take advantage of the service.
The Target Restock service is another step forward in the battle between physical retailers to keep up with Amazon.com, Inc.’s (NASDAQ:AMZN) free two-day shipping for Prime members. Costco Wholesale Corporation (NASDAQ:COST) has expanded its grocery delivery options in Florida and is looking to bring the offer to more areas this year. Wal-Mart Stores Inc (NYSE:WMT) has also introduced free two-day shipping on orders of $35 or more.
