Target Paid Membership Program?

[storewanderer]

There seem to be rumors that Target is about to start a paid membership program like this Safeway Fresh Pass, Kroger whatever (forget what it is called... oh, Boost), Wal Mart Plus, etc.

The timing seems off since many consumers are cutting off subscription programs due to budget concerns/price increases that have occurred in 2024 on forced things (like car insurance, health insurance, etc.).

I wonder if this move to close self checkouts is also an effort to get more employees behind registers so they can sign people up for this new program at the registers. What will that do to the speed of checkout...?

I just find it ironic these programs cost more than a Costco or Sam's Club membership. I feel like the benefit of Costco or Sam's Club for access to lower pricing, gas, return policy, discount on "big ticket" purchases, etc. is far greater than some extra "Rewards points" and such.

[SamSpade]

Best Buy just started a tiered one as well.
So I guess this is the new "cash grab" as eCommerce lags. (can these be counted as eCommerce?)

[arizonaguy]

I hope they don't come out with this.

I enjoy my combination of 5% RedCard and Target Circle occasional discounts.

I won't join any program that costs me more for the same benefits I currently receive.

[ClownLoach]

I hope they don't come out with this.

I enjoy my combination of 5% RedCard and Target Circle occasional discounts.

I won't join any program that costs me more for the same benefits I currently receive.

It makes perfect sense. They need to merge in the Shipt brand. It'll just be Shipt membership renamed as that brand is phased out. Until now they've made zero effort to sell Shipt memberships in store which is pretty much criminal considering how long they've owned it now.

This is part of discouraging drive up orders and getting those customers "off the payroll" and transitioned to Shipt gig workers pulling their orders and delivering to their homes. This will also reduce expensive eCommerce shipping orders, which are currently free for RedCard, as the Shipt customer can have the same items plus food delivered in a couple of hours as long as their store is in stock. Expect this to be the only benefit eliminated from RedCard as an order minimum is added for shipping.

My understanding is the installation of costly new parking lot canopies for Drive Up are also being halted.

They are finally realizing that they are losing too much money on the unprofitable eCommerce business and they cannot offset the rising shipping and labor costs, so they need to accelerate the underutilized Shipt program and gig workers.

Like I said, big changes coming to revitalize actual in store service at Target... Big restructuring... I just worry about their poor training and development programs potentially derailing the benefits of these changes.

[storewanderer]

It makes perfect sense. They need to merge in the Shipt brand. It'll just be Shipt membership renamed as that brand is phased out. Until now they've made zero effort to sell Shipt memberships in store which is pretty much criminal considering how long they've owned it now.

This is part of discouraging drive up orders and getting those customers "off the payroll" and transitioned to Shipt gig workers pulling their orders and delivering to their homes. This will also reduce expensive eCommerce shipping orders, which are currently free for RedCard, as the Shipt customer can have the same items plus food delivered in a couple of hours as long as their store is in stock. Expect this to be the only benefit eliminated from RedCard as an order minimum is added for shipping.

My understanding is the installation of costly new parking lot canopies for Drive Up are also being halted.

They are finally realizing that they are losing too much money on the unprofitable eCommerce business and they cannot offset the rising shipping and labor costs, so they need to accelerate the underutilized Shipt program and gig workers.

Like I said, big changes coming to revitalize actual in store service at Target... Big restructuring... I just worry about their poor training and development programs potentially derailing the benefits of these changes.

That makes a lot of sense. Rolling the Shipt membership into Target will probably result in strong/full retention of current Shipt members and attract a few new members.

It is not unreasonable to have an order minimum for free shipping. CVS has a $10 minimum for free shipping for those who have Carepass membership now (and that $10 is AFTER redemption of Extra Bucks or other coupons). Rite Aid a couple weeks ago stopped free shipping at 34.99 and now has a flat rate 3.99 shipping for all orders online... all Rite Aid orders ship from NY now (they used to ship some from Woodland, CA but stopped that a few months ago... now we know why).

[ClownLoach]

It makes perfect sense. They need to merge in the Shipt brand. It'll just be Shipt membership renamed as that brand is phased out. Until now they've made zero effort to sell Shipt memberships in store which is pretty much criminal considering how long they've owned it now.

This is part of discouraging drive up orders and getting those customers "off the payroll" and transitioned to Shipt gig workers pulling their orders and delivering to their homes. This will also reduce expensive eCommerce shipping orders, which are currently free for RedCard, as the Shipt customer can have the same items plus food delivered in a couple of hours as long as their store is in stock. Expect this to be the only benefit eliminated from RedCard as an order minimum is added for shipping.

My understanding is the installation of costly new parking lot canopies for Drive Up are also being halted.

They are finally realizing that they are losing too much money on the unprofitable eCommerce business and they cannot offset the rising shipping and labor costs, so they need to accelerate the underutilized Shipt program and gig workers.

Like I said, big changes coming to revitalize actual in store service at Target... Big restructuring... I just worry about their poor training and development programs potentially derailing the benefits of these changes.

That makes a lot of sense. Rolling the Shipt membership into Target will probably result in strong/full retention of current Shipt members and attract a few new members.

It is not unreasonable to have an order minimum for free shipping. CVS has a $10 minimum for free shipping for those who have Carepass membership now (and that $10 is AFTER redemption of Extra Bucks or other coupons). Rite Aid a couple weeks ago stopped free shipping at 34.99 and now has a flat rate 3.99 shipping for all orders online... all Rite Aid orders ship from NY now (they used to ship some from Woodland, CA but stopped that a few months ago... now we know why).

I would expect Rite Aid to move to ship from store. That is the trend in the industry to reduce the cost and environmental impact. Everyone is moving away from fulfillment centers after spending decades building them. Now you can close that expensive facility and replace it with a inexpensive cloud based app on an iPad in every store. Slash costs dramatically and reduce shipping distance 90% or more.

[ItsAshleyFTW]

I would expect Rite Aid to move to ship from store. That is the trend in the industry to reduce the cost and environmental impact. Everyone is moving away from fulfillment centers after spending decades building them. Now you can close that expensive facility and replace it with a inexpensive cloud based app on an iPad in every store. Slash costs dramatically and reduce shipping distance 90% or more.

For a while, Walmart primarily used store delivery to fulfill items on their website. This could have been to reduce delivery times and costs. Shipping from warehouse was still the default for items not available in store, as well as in areas without any Walmart stores. However, recently they have added shipping and store delivery as separate options, and you can now change results to shipping only, just in case Walmart doesn't do store deliveries in your area. It looks kind of like what Target does on its website now.

It would be nice if Target and Walmart added ship-to-store options like Home Depot, Lowe's, and Best Buy. A fulfillment center can hold many more items than any one store can, and ship-to-store could be a boon for companies to save money by using their own trucks to ship items to the store instead of paying UPS, FedEx, etc. to ship it for them. I think they had ship-to-store in the past but got rid of it for whatever reason.

[storewanderer]

I would expect Rite Aid to move to ship from store. That is the trend in the industry to reduce the cost and environmental impact. Everyone is moving away from fulfillment centers after spending decades building them. Now you can close that expensive facility and replace it with a inexpensive cloud based app on an iPad in every store. Slash costs dramatically and reduce shipping distance 90% or more.

For a while, Walmart primarily used store delivery to fulfill items on their website. This could have been to reduce delivery times and costs. Shipping from warehouse was still the default for items not available in store, as well as in areas without any Walmart stores. However, recently they have added shipping and store delivery as separate options, and you can now change results to shipping only, just in case Walmart doesn't do store deliveries in your area. It looks kind of like what Target does on its website now.

It would be nice if Target and Walmart added ship-to-store options like Home Depot, Lowe's, and Best Buy. A fulfillment center can hold many more items than any one store can, and ship-to-store could be a boon for companies to save money by using their own trucks to ship items to the store instead of paying UPS, FedEx, etc. to ship it for them. I think they had ship-to-store in the past but got rid of it for whatever reason.

I used to get ship to store items from Wal Mart back in the day where the Layaway counter had been converted to a .com counter (only like 7 years ago but feels like A LOT has changed since then with regards to this whole online thing).

I liked being able to get items not available locally and have free shipping. I'm not sure how the boxes got to Wal Mart.

Also until last August Walgreens still had free ship to store from a warehouse for online orders, that was great as they always fulfilled 100% of items ordered. The orders were delivered to the store by FedEx. Walgreens closed the warehouses for online orders and started to do ship from store- the number of out of stocks/canceled items are ridiculously high at Walgreens.com now and I have quit ordering anything from that website.

Unlike Target who "bounces your order to another store" if the store it is initially assigned to is out of stock (and keeps bouncing it until some store finally fulfills it), Walgreens just flat cancels that item from your order. When you are trying to "spend $40 to get $10 Walgreens Cash" that causes you to fall below the $40 and not get your $10.

[storewanderer]

I would expect Rite Aid to move to ship from store. That is the trend in the industry to reduce the cost and environmental impact. Everyone is moving away from fulfillment centers after spending decades building them. Now you can close that expensive facility and replace it with a inexpensive cloud based app on an iPad in every store. Slash costs dramatically and reduce shipping distance 90% or more.

Personally I hope they don't given the inventory situation in their stores. Rite Aid pulls orders directly from a store distribution center. There is not a separate distribution center for .com orders (this is how Walgreens was-two separate .com only distribution centers).

The conversion of Walgreens from .com warehouses to ship from store has been a DISASTER when it comes to order accuracy, item condition, and fulfillment of entire orders.

[ClownLoach]

I would expect Rite Aid to move to ship from store. That is the trend in the industry to reduce the cost and environmental impact. Everyone is moving away from fulfillment centers after spending decades building them. Now you can close that expensive facility and replace it with a inexpensive cloud based app on an iPad in every store. Slash costs dramatically and reduce shipping distance 90% or more.

Personally I hope they don't given the inventory situation in their stores. Rite Aid pulls orders directly from a store distribution center. There is not a separate distribution center for .com orders (this is how Walgreens was-two separate .com only distribution centers).

The conversion of Walgreens from .com warehouses to ship from store has been a DISASTER when it comes to order accuracy, item condition, and fulfillment of entire orders.

It saves a fortune though. Ship from DC is not profitable.