Target Buys Same-Day Delivery Company to Battle Amazon

[Megalith]

Target is expanding their same-day delivery service by purchasing Grand Junction, a startup that links retailers and other distributors to a network of more than 700 carriers across North America. Obviously, this decision was made to improve their web business, which is well behind both Amazon and Wal-Mart. Most people have a Target within driving distance, though, so I’m not sure how exciting this should be.

The same-day service will expand to other New York City stores by October and to additional U.S. cities early next year, Valdez said. Target and Wal-Mart are playing catch-up with Amazon’s Prime service, which already lets members in about 30 metropolitan areas receive orders in as little as an hour. Four out of five shoppers want same-day shipping, according to a survey by fulfillment software maker Temando, but only half of retailers offer it.

 

[spugm1r3]

If you have ever used Target's website, it's a pretty depressing experience. I don't think same-day service would be my highest priority, as much as making it easier to find items and getting rid of the marketplace sellers. That last comment applies to most every big-box retailer's website. Very few companies manage the marketplace well, and most highly underestimate the complexity of doing it well.

 

[katanaD]

i think we have been to the target website a handfull of times. mainly to find again the same set of dishes we got long ago to get more to replace broken bowls/plates.. etc and like the above poster states.. man.. its horrid.

maybe target would be best served if they opened up a marketplace site on amazon.. LOL use their mighty shipping resources to their own advantage.

 

[Jagger100]

Yeah sameday service of home goods might be something they can do that Amazon can't. But their website sucks. Fix that first.

 

[zomby]

Target should have compete more in Canada with lower prices, that is the only reason they failed, the products was not as competitive as Walmart was.

 

[ButtonPuncher]

Even tough there's a Target a few miles from my house, if it saves me time and I can come home to the stuff I needed, I'd use this service.

 

[haste.]

Target should have compete more in Canada with lower prices, that is the only reason they failed, the products was not as competitive as Walmart was.

Walmart is using price as a differentiating feature - they care not about quality which is the same with their consumers. Target has done (fairly) well capturing the young up and coming affluent with their strategy, while not trying to compete with the high end department stores. Prices are slightly higher for a reason, if not just perception.

I have entered a Wal Mart once in a decade and it was because it was a religious holiday, I forgot to get a few dinner items for guests coming, and EVERY other store was closed. The experience is awful and their products leave a bit to be desired.

That said I agree with everyone saying Target should be focusing on their awful website and not delivery channels! On the other hand I would use this service to not be asked about a mother f'in red card ever again even though there is a Super Target 5 minutes from my house.

 

[lostin3d]

It almost seems like they're flailing and trying not to drown. I saw on national news a month or so ago they were doing layoffs. I also agree about their website, I go there a few times a year and can wait to hit close. I go to the local store a couple times a year and I'm still amazed at how expensive it is and usually leave with little or nothing. I think its only a matter of time till we see more nails in this coffin.

 

[Romale23]

I bring this up because the purchase is in response poor numbers. Everyone (retail companies) is fixated on amazon and, while amazon is a threat to margins, it doesn't explain what is going on.

Initial thoughts:
1. Amazon only own 5% of retail sales.
2. wages are at the same level they were in 2006
3. You have 1000$ cell phones now (changes in spending what money people have)
4. record household debt.

This makes me want to go get all the numbers and do some hard number analysis because on the surface I don't believe e-commerce explains the weakness in retail sales and the poor outlooks. While target's purchase may be good in a strategy to prevent more market share erosion, if they think its going to fix declining sales that are a result of market fundamentals i just don't see it. And as everyone said, target is target's number 1 reason why they have a shitty eCommerce numbers.

 

[capt_cope]

Even if their website were easy to use they're in that ugly "middle" market of retail - not as cheap as walmart but not as nice as nordstroms. Same-day delivery won't solve that problem.