Shipping from Stores Helps Target Level the Playing Field with Amazon

Target improved its two-day delivery capabilities significantly in the past year and a half

Oct. 29, 2015—By turning stores into mini e-commerce distribution centers, retail chain Target Corp. has improved the speed at which customers receive online orders.

The percentage of online orders delivered by Target within two days increased to 26 percent from August 2014 to October 2015 from 2 percent during the period of April 2012 to July 2014, according to a report from customer service monitor StellaService. Here’s how that compares with other major retailers:

  • Amazon.com Inc.: 29 percent, from August 2014 to October 2015, compared with 35 percent, from April 2012 to July 2014.
  • Wal-Mart Stores Inc.: 29 percent, from August 2014 to October 2015, compared with 34 percent, from April 2012 to July 2014.
  • Multiline retail category average: 27 percent, from August 2014 to October 2015, compared with 22 percent, from April 2012 to July 2014.

StellaService vice president Kevon Hills says the study included two years of data, starting before Target began shipping from stores. While Target’s gains are impressive, especially when compared to the average, Hills says it’s not out of character.

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