Target planning Amazon-style move to change shopping online for all customers
The retailer is looking to expand its range of low-cost products with the service, which would be similar to Chinese e-commerce platforms like Shein and Temu and major rival Amazon.
Most online Target orders go through the retailer's warehouses before being delivered to customers.
But by mailing products directly from the manufacturer or supplier to the shopper instead, Target could potentially offer lower prices.
This new model would reportedly primarily include apparel, household goods and other non-food items.
The company has not formally announced the test, but a spokesperson revealed that Target regularly explores new methods of product and service deliveries.
'In all cases, we uphold the high quality, responsible sourcing and sustainability standards that Target is known for and that consumers expect from us,' the spokesperson told Bloomberg.
It comes after Target's first quarter sales fell more than expected as it faced boycotts for turning its back on DEI policies and hiking prices as a result of tariffs.
Target, which operates nearly 2,000 stores nationwide, issued multiple warnings that it may have to raise prices due to levies implemented by President Donald Trump.
In May, Target announced sales fell 2.8 percent to $23.85 billion in the first quarter of this year. The results were lower than the $24.23 billion Wall Street expected, according to FactSet.
The retailer's shares dropped more than six percent following the news and were down 40 percent over the year.
While factory-direct shipping may be part of a plan to reinvigorate sales, retail expert Neil Saunders of GlobalData believes this model may not solve all of Target's problems.
'Target's move isn't a terrible one, but it raises a lot of questions. Foremost among them is whether the new function will cannibalize sales from Target's core offer,' he told DailyMail.com.
'If it does, then it could be damaging to revenue and profitability. Target will need to execute carefully to ensure that the direct-shipping model is mostly incremental.'
Saunders continued by saying the move was 'made out of desperation' as the pressure from its sales and performance is leading to the company looking for ways to boost business.
'Direct shipping may help a bit, but it's not a new model and it is a very competitive space. It is not entirely clear what Target would do to differentiate themselves,' he said.
Items mailed directly from the manufacturer or supplier to the shopper bypassing warehouses is considered factory-direct shipping
Target's first quarter sales fell more than expected as it faced boycotts for turning its back on DEI policies and hiking prices as a result of tariffs
Retail expert Neil Saunders believes this model may not solve all of Target's problems
Target is in the middle of strategic plans aiming to increase its sales to over $15 billion by 2023.
These plans include new collaborations and partnerships, expanding sizes in its Target Plus marketplace, and doubling the size of its in-house media company Roundel.
Employees, meanwhile, have become scared about potential layoffs and store closures after select product prices jumped over 90 percent.
Walmart, one of Target's biggest competitors, also warned customers of price hikes last November.
The increases became a reality after viral photos of new prices leaked on Reddit.
Walmart employees have continued speaking out about the changes, and Target employees have begun posting their own photos on social media.
Other retailers affected by the dreaded price hikes include Macy's, Best Buy, and e-commerce empires like Shein, Temu, and Amazon.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
22 minutes ago
- The Independent
What has led to customers abandoning Target?
Target has experienced stagnated sales and a significant drop in stock value since 2022, struggling to retain customers after various controversies. The retailer faced boycotts and customer backlash after ending its diversity, equity, and inclusion initiatives to comply with an executive order by Donald Trump. Further customer alienation occurred when Target scaled back its Pride merchandise in 2023 following conservative protests and threats. These controversies have contributed to a 2.8 per cent drop in Q1 sales and an expected low single-digit percentage decline in annual sales. Many formerly loyal customers are now opting for alternative retailers, citing high prices and a misalignment with Target's perceived values.
Daily Mail
22 minutes ago
- Daily Mail
Oil barons at war 'after one spread rumor rival was SWINGER around country club to steal his job'
An energy magnate has accused his business partner of spreading rumors about him being a swinger in their fancy country club so he could steal his job overseeing $3billion in oil reserves. Michael Duginski, co-founder and CEO of Sentinel Peak Resources, was fired by his own company's board in May after he was accused of 'exhibiting unacceptable behavior in the workplace.' But in a lawsuit filed July 28, Duginski said the false claims came from his jealous co-founder George Ciotti, who replaced him as CEO of the Denver-based energy firm last month. 'Mr. Ciotti wanted to be the CEO of Sentinel Peak Resources, was disappointed not to be considered Mr. Duginski's successor, and therefore initiated a sham investigation into Mr. Duginski to create a vacancy for the role he coveted,' said the lawsuit, seen by Business Den. Duginski claimed in the suit that he realized what happened at the Glenmoor Country Club in Cherry Hills Village where other members started inquiring about his 'lifestyle.' He said he has lost business opportunities 'as colleagues within his community and industry now have misconceptions about his character.' 'Mr. Ciotti had been spreading untrue rumors about Mr. Duginski in the first part of 2025, specifically that Mr. Duginski and his wife are swingers,' the lawsuit read. 'Mr. Ciotti shared the same information with executives and employees at SPR. This accusation is untrue, and Mr. Ciotti knew it was false but wanted to harm Mr. Duginski's reputation.' Duginski said the company was doing well and considering a possible sale when he was handed a memo in December that stated a probe had uncovered 'a concerning level of inappropriate behaviors that is putting the company at risk.' He said he was not informed what he had done wrong as he was placed on leave, according to the lawsuit. Duginski had still reportedly not been told what the claims against him were until April, when an independent investigator interviewed him about the issue but still kept the questions vague, per the court filing. The ousted CEO said he then received a letter from the board saying the probe on his behavior concluded 'there are sufficient grounds to end your employment for cause.' Duginski said in his lawsuit that he asked the company for a copy of the probe's results but never received one. Sentinel Peak owns $3billion of oil reserves mostly in California. Duginski named Sentinel Peak as a defendant and also sued Ciotti for defamation. He asked for $650,000 in back wages, $3 million that he invested in Sentinel Peak, and the unknown value of his company stock.
Reuters
22 minutes ago
- Reuters
Trump threatens to raise tariffs on goods from India over Russian oil purchases
WASHINGTON, Aug 4 (Reuters) - Donald Trump said on Monday he will substantially raise tariffs on goods from India over its Russian oil purchases, while New Delhi said it would take measures to safeguard its interests and called its targeting by the U.S. president "unjustified." Trump said last week Washington was still negotiating with India on trade after announcing the U.S. would impose a 25% tariff on goods imported from the country starting last Friday. India has faced pressure from the West, including the U.S., to distance itself from Moscow after Russia invaded Ukraine in early 2022. New Delhi has resisted that pressure, citing its longstanding ties with Russia and economic needs, opens new tab. "India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine," Trump said in a post on Truth Social. "Because of this, I will be substantially raising the Tariff paid by India to the USA." He did not elaborate on what the tariff would be. Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump's threats. The sources did not wish to be identified due to the sensitivity of the matter. Washington has cited geopolitical disagreements with India to explain why it has not yet been able to reach a trade deal with New Delhi. Other than India's ties with Russia, Trump has cast the BRICS group of developing nations - of which India is a key part - as hostile to the U.S. Those nations have dismissed that accusation, saying the group promotes the interests of its members and of developing countries at large. A spokesperson for India's foreign ministry said India will "take all necessary measures to safeguard its national interests and economic security." "In this background, the targeting of India is unjustified and unreasonable," the spokesperson added. India began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, the Indian statement said. The spokesperson said India's imports were meant to ensure affordable energy costs for Indian consumers and were a "necessity compelled by global market situation." The statement also noted the West's, particularly the European Union's, bilateral trade with Russia: "It is revealing that the very nations criticizing India are themselves indulging in trade with Russia." India also has been frustrated by Trump repeatedly taking credit for an India-Pakistan ceasefire that he announced on social media on May 10. The ceasefire halted days of hostilities between the nuclear-armed Asian neighbors. India's position has been that New Delhi and Islamabad must resolve their issues directly without outside involvement. Trump has reached a trade deal with Pakistan.
