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MINNEAPOLIS — Free shipping on all online purchases is the centerpiece of Target Corp.’s strategy for the end-of-year holiday season.
Free shipping on all online purchases is the centerpiece of Target Corp.’s strategy for the end-of-year holiday season.
The company is also ramping up its spending on holiday advertising and introducing thousands of new items, many featuring design partnerships and trendy, affordable apparel.
"Our value proposition will be unrivaled, with compelling promotions and an exceptional shopping experience online and in our stores," says Brian Cornell, who took over as Target’s chief executive officer in August.
Target’s offer of free shipping on all online orders, regardless of size, differentiates it from rival Walmart, which offers free shipping on orders of $50 or more.
And by offering free shipping, Target can eliminate some of the surprise costs at checkout that often compel shoppers to back away from a transaction. Target said conversion on its digital channels is up 40% this year. The retailer saw 30% growth in online sales in its most recent quarter. It is hoping to sustain that growth by improving its website and updating its mobile and iPad apps.
Target’s coupon app, Cartwheel, will feature a new toy at 50% off every day through Christmas Eve. And Target’s iPad app lets young customers shop a virtual catalog like a game, adding products to a wish list parents can then order directly from the app.
Target also hopes to attract online shoppers with its store pickup option, which allows customers to buy an item online and retrieve it at a brick-and-mortar location.
Additionally, Target continues to add ship-from-store capabilities in its biggest markets to reduce its reliance on fulfillment centers and deliver merchandise to buyers more quickly.
