One quarter in to 2019, Target is already seeing the benefits of same day delivery service. According to an article from Digiday.com (by Hilary Milnes), Target’s COO John Mulligan reported 80% of the company’s first quarter digital sales were fulfilled from stores.
Target is taking advantage of its brick and mortar locations to capitalize on same day delivery of goods to customers. In 2017, Target acquired Shipt, a last-mile delivery company, to accommodate the same day delivery needs of its customers. Fulfilling orders out of local stores has made the digital order more profitable than typical online orders. This strategy allows Target to compete with Amazon Prime.