Target Slashes Fee for Delivery Service
Target saw a bump in its shares on Tuesday after the giant retailer said that it would be making a change to its delivery service.
Target Corp. (NYSE: TGT) saw a bump in its shares on Tuesday after the giant retailer said that it would be making a change to its delivery service. The firm is going to reward some of its more loyal customers while incentivizing others to step up.
Starting this week, customers purchasing household staples through Target’s Restock service will pay a $2.99 delivery fee instead of $4.99. And those who buy items with Target’s branded credit/debit card won’t pay anything extra at all.
Additionally, Target has said that it’s tapping its network of stores to more quickly fulfill orders and shrink the time it might take for products to be delivered from a distant warehouse.
According to USA Today:
Target’s Restock service was first given a test run last year in Minneapolis-St. Paul, and then tried out in another 10 markets. This week, it will become available in more than 60 markets, designed to be within range of 75% of the U.S. population, including Austin, Omaha, Seattle, and many suburban and rural areas that may not have a local Target store easily in reach of many.
Target is rolling out this service to compete with the likes of Walmart and Amazon, which have implemented similar strategies.
Excluding Tuesday’s move, Target had outperformed the broad markets with the stock up 30% in the past 52 weeks. In just 2018 alone, the stock was up closer to 12%.
Shares of Target were last seen up just over 1% at $73.22, with a 52-week range of $48.56 to $78.70.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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