Target Takes Its Subscription Service to the Next Level
Target (NYSE:TGT) is expanding its online subscription service in an effort to combat increasing competition from rivals like Amazon.com (NASDAQ:AMZN) and Wal-Mart (NYSE:WMT). ABC News reported last week that after making 150 baby care products available in September for subscription, Target recently expanded that program to cover nearly 1,600 items across a wider spectrum of products. Its subscription service is free and allows people to schedule shipments in four, six, eight, 10, and 12-week installments.
Amazon’s own program, Subscribe and Save, is one of the most popular subscription services, and it initially won over customers with the program that can restock their shelves for them before they even notice what’s gone missing. Delivering toilet paper, paper towels, and razors at prescheduled times have allowed customers to always stay stocked, and many have even enjoyed the benefits of Prime that allows them to get their items at no shipping cost, and always within two days.
Amazon has realized significant success with its Subscribe and Save program, and that’s why Target is now trying to also get in on the gains. According to ABC News, Jason Goldberger, senior vice president of Target.com, says that Target’s subscription expansion is driven by very strong demand, and even though the service only began six months ago, the baby care items that were part of the rollout now account for 15 percent of online sales for that specific category.