Target is testing a service that delivers products directly from factories to customer's homes, similar to how platforms like Temu, Shein, and most recently Amazon Haul operate. The effort aims to broaden the retailer's range of low-cost offerings such as apparel, household goods, and non-food items, according to Bloomberg sources.
A Target spokesperson said:
“In all cases, we uphold the high quality, responsible sourcing and sustainability standards that Target is known for and that consumers expect from us.”
Target has struggled to revive sales growth in recent years, and the company shares are currently trading down 28% so far this year, while the S&P 500 has risen 3.6%, which is pressuring management to shake-and-bake. It's also been dealing with a sustained consumer boycott following its decision to end diversity, equity, and inclusion practices earlier this year.
I understand Target's dilemma, but when has copying other retailers ever worked for the company? Remember…
- a decade ago when Target followed Walmart into Canada, opened over 130 stores in two years, and then lost over $2B before pulling out of the country entirely by 2015?
- in the 90s when Target launched SuperTarget stores to compete with Walmart Supercenters before ultimately scaling back the format to focus on smaller grocery sections in their regular stores?
- when Target tried to shift away from its promotional pricing model towards “Everyday Low Prices” to be more like Walmart, but then couldn't actually compete on price?
- when Target failed at launching dozens of private-label brands to compete with Walmart's Great Value and Equate brands?
- back in 2017 when Target acquired Shipt for $550M so it could offer same-day delivery to its customers, only to have the brand name fade into the abyss?
- in the early 2010s when Target introduced in-store clinics to compete with Walmart and CVS, but didn't know how to operate them, so they eventually sold them to CVS?
- when Target was desperate to launch an Amazon Prime competitor, but couldn't figure out the offering, so it jumped from REDcard discounts to Cartwheel to Target Circle, without ever replicating the stickiness factor that Amazon and now Walmart have been able to achieve?
- when Target had absolutely no clout, name recognition, or relationships with Chinese factories? Oh wait, that's now!
I'm not trying to hate on Target because I'm a fan. Back when I lived in the U.S., I always preferred to visit a Target store over a Walmart on any occasion. I'm just trying to demonstrate that playing copy cat with every competitor hasn't worked out so far for Target (it's not Meta), and I don't see it happening now with Target Haul (or whatever they call it, LOL).
Target needs to sit down, have a nice long look in the mirror, and ask, “Who am I?” And then build an offering for the next twenty years that reflects that answer. Because trying to be Walmart, Amazon, and now Temu and Shein is not the solution.