Target, Walmart Results Show They Do Have An Edge Against Amazon

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Target, Walmart Results Show They Do Have An Edge Against Amazon
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While Amazon is busy plowing money into making free Prime one-day shipping the new norm, results from its rivals Walmart and Target suggest their much-larger brick-and-mortar store fleets are proving to be key weapons against the online giant

Share to twitterTarget shares hit a record high Wednesday after initiatives such as loading customers' online orders in their cars help to drive better-than-expected results. , results from its rivals Walmart and Target suggest their much-larger brick-and-mortar store fleets are proving to be key weapons against the online giant.

Those three alternatives together have more than doubled their sales in the last year, to more than a third of Target’s online total, from 20% a year earlier, Target chief operating officer John Mulligan said on a conference call Wednesday. They also solve a big pain point increasingly facing the online economy. “It eliminates the need to deal with opening and recycling a stack of cardboard boxes every week,” Mulligan said.

According to Gordon Haskett analyst Chuck Grom, Target’s same-day fulfillment options cost nearly 90% less than fulfilling orders from a distribution center. Shipping online orders from stores also cost about half of doing that from a distribution center, he said in a report Wednesday.Target, which has more than 1,800 locations, has also been remodeling stores and is doubling down on its own line of stores brands to differentiate its merchandise and lure customer traffic.

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