retail news in context, analysis with attitude

CNBC has a story about how Target's digital sales during the last quarter were up 31 percent, "with its same-day services accounting for 80% of that growth. Those services include a curbside pickup option, same-day delivery via its Shipt network and buy online, pick up in store."

Target, the story says, "says it has found a way to slash costs and make money."

CEO Brian Cornell tells CNBC that "when Target fulfills an online order from the back of its stores versus shipping from a distribution center, 'about 40% of the cost goes away.' He said when customers order online and pick up at a store, use curbside pickup or select shipping via Shipt, 'about 90% of the cost goes away'."

The story notes that "arguably, this is the one area where Amazon can’t compete at the same size and scale. It doesn’t have a network of stores, like Target and Walmart, where shoppers can pick up orders. But it has been adding Amazon lockers to its Whole Foods grocery stores and shopping malls."
KC's View:
Target seems to have done a very good job of creating an innovation-centric culture within the confines of a legacy company … which is impressive. I'm interested to see how this plays out long-term, and also to see how it ends up being extended to the Target in Stamford, Connecticut - which is the one closest to me that is, to be honest, kind of crappy.