Retail giant Target plans to launch next-day home delivery of household goods, an effort to keep up with its main competitors, Walmart and Amazon.com, that already operate similar services for online shoppers.
The service, dubbed Target Restock, is currently being tested among employees in the Minneapolis area, where the company is headquartered. Target will launch the pilot service more broadly in Minneapolis this summer, it said in a company blog Monday.
Target didn't specify pricing but said delivery will cost "a low, flat fee." Amazon's Prime Pantry service, which delivers groceries and household goods to its Prime members, costs $5.99 per box per delivery that arrives usually within four days.
In Target's pilot program, customers wishing to use the delivery service must have a company-issued credit or debit card, called REDcard. They will be able to select from "thousands" of household goods, including laundry detergent, paper towels, granola bars and coffee, it said. Orders placed before 1:30 p.m. will be delivered by the next business day.
Online shopping for groceries and household goods is a growth opportunity for retailers and grocers that have seen their market shares increasingly captured by Amazon and other online startups. Nearly a quarter of American households buy groceries online, up from 19% in 2014, according to a report in January by Food Marketing Institute and Nielsen.
Meanwhile, Walmart has been expanding its online grocery pickup service across the country, in which customers shop online and pick up packaged bags at nearby stores. It has also launched grocery home delivery in San Jose, Calif. and Denver.
In Phoenix and Denver, Walmart also has partnered with car-service operators Uber and Lyft, an arrangement in which drivers pick up and deliver groceries to customers' homes for a fee.
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