Target is moving forward with its plans to add fresh and frozen grocery items to its Order Pickup and Drive Up services, potentially providing consumer goods companies with an opportunity to stay agile in the face of shifting consumer behavior.
Target is adding about 750 produce, dairy, bakery, meat and frozen items to its same-day fulfillment services after temporarily putting the brakes on the implementation during the spring to fulfill the unexpected demand prompted by COVID-19.
More than 400 stores in the Midwest will offer the fresh and frozen items by the end of June, with more than 1,500 stores offering them by the holiday season.
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Target’s addition of fresh and frozen consumer goods is yet another way the retailer can accommodate the new consumer behaviors that have emerged as a result of COVID-19, noted Amit Shah, chief strategy officer at digital commerce platform provider VTEX, to CGT. “[Retailers are] realizing that even after social distancing restrictions are lifted, the new 'click-and-collect' model of shopping is ultimately what most consumers deem convenient and what meets their levels of comfort when it comes to interacting with others.”
By becoming fundamental pieces in the in-house supply chain, Target’s suppliers may reap the rewards afforded by real-time data from e-commerce orders, noted Shah.
“CPGs are looking to expand outside of their traditional revenue models to fast-track growth and meet changing consumer preferences amid shifting standards,” he said. “By retooling their strategy and operations to meet end customers more closely to where they are, Target’s consumer goods suppliers can create sustainable change and growth.”