Target CEO Brian Cornell is wasting no time in trying to rev up the retailer’s sales between now and Christmas with a bold move to offer free delivery for online purchases through Dec. 20.
Cornell, former CEO of Sam’s Club, said his new management team recently spent time making plans on how Target can differentiate itself.
“Leading with free shipping for the holidays we think is a really important step for Target,” Cornell said.
Wal-Mart offers free delivery on orders above $50 and no added charge for pickup at a neighboring store. Analysts say this move by Target pressures other retailers to match the delivery option. A separate study by Deloitte found the biggest reason people abandon their online shopping carts is when they see unexpected costs related to shipping and delivery. That was true in 60% of the shoppers surveyed by Deloitte.
Analysts said free delivery is not enough in and of itself especially when Target is shown to have higher overall prices in many categories compared to other retailers. Target answered that it’s also planned an aggressive couponing program with its Cartwheel app and guaranteed price-matching from Nov. 1 through Christmas Eve.
Cornell said data breaches have become the new normal and shoppers this holiday are not likely to hold a grudge. Last year a major security breach at Target affected 110 million consumers during the holiday shopping season. Cornell said Target looks at this everyday, 24 hours a day making sure it has the right detection, monitoring, containment and response plans.