Target makes drastic change to convenient service customers love | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Target (TGT) has recently fallen behind some of its top competitors as it feels the brunt of an alarming shift in customer behavior.

During the second quarter of this year, Target’s comparable store sales dropped by almost 3.2% year-over-year, while competitors such as Walmart, Costco, and Dollar General saw spikes in sales.

Also, according to recent data Placer.ai shared with TheStreet, Target’s foot traffic continues to dwindle, despite its launch of generous back-to-school deals in June.

Last month, during the peak of back-to-school season, Target’s foot traffic fell by 3.3% year-over-year. Even during the first week of September, customer visits in Target stores dipped by 6.2%.

The decrease in sales comes during a time when consumers are being more cautious about their spending as tariffs go into effect, which threatens to raise prices for everyday goods.

Target also recently faced backlash from consumers for cutting its diversity, equity, and inclusion policies, sparking several massive boycotts.

Target makes an unexpected change to a beloved service

Despite decreased in-store sales, Target saw its digital comparable sales rise by 4.3% during the second quarter due to more than 25% growth in its same-day delivery and Drive Up services.

Target makes a big move to prepare for the holiday season amid weak sales.

Image source&colon; Brewer/Bloomberg via Getty Images

Amid this increased consumer demand for online orders, Target recently announced that it has expanded its next-day delivery service to make holiday shopping more seamless.

By the end of October, Target customers in “35 top U.S. metro areas” will be able to get their online orders delivered within the next day, according to a new press release.

Target customers can select next-day delivery for online orders over $35. For all other orders, next-day delivery is available for $5.99. An order amount minimum is not required for Target Circle members to access this service.

Cities that will offer next-day delivery available by the end of October include:

San Diego, CA
Cleveland, OH
Orlando, FL
Tampa, FL
Charlotte, NC

Target also revealed that the service will become available to four more cities by the end of this month, these include:

Kansas City, MO
St. Louis, MO
Durham, NC
Pittsburgh, PA

“We’ll expand into even more areas next year as our stores-as-hubs model continues to enable fast and cost-effective fulfillment,” said Target in the press release.

Target still faces major headwinds that could impact holiday sales

Target’s expansion of next-day delivery will definitely give it more of a competitive edge in the retail space. However, it still falls behind some of its competitors, who are rapidly expanding their same-day delivery services.

In June, Target’s top rival, Walmart, expanded its drone delivery service to five new cities: Atlanta, Charlotte, Houston, Orlando, and Tampa. Walmart’s drone delivery puts orders in the hands of its customers within minutes.

Last month, Amazon also announced that it expanded its same-day delivery of fresh groceries to over 1,000 towns and cities, and it plans to double that reach by the end of the year.

Target’s move to make holiday shopping more convenient for customers also follows the recent release of a survey from accounting firm PwC, which revealed that Americans will decrease their holiday spending by 5% this year, compared to 2024.

Americans are expected to spend an average of $1,552 per person on holiday gifts, travel, and entertainment.

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“Consumers are approaching holiday purchases more deliberately, deciding what matters most, where to scale back and what feels worth the splurge,” said PwC in the report. “Brands that recognize these nuances, and meet shoppers where they are, have an opportunity to build loyalty that lasts beyond December.”

Amid waning consumer confidence, Target has recently rolled out a new plan to win back customers.

During an earnings call on Aug. 20, Target Chief Operating Officer Michael Fiddelke, who will take over as CEO in February next year, said the company’s recent performance has “not been acceptable.”

He added that Target needs to focus on offering better merchandise and customer service to boost sales, which also involves making “key technology investments.”

“First, we must reestablish our merchandising authority in a way that is distinctly Target,” said Fiddelke. “Second, we’re a retailer that believes that an elevated experience is every bit as important as product. We want guests to find a sense of joy from every trip to Target, and we must do that more consistently and frequently. And third, we must more fully use technology to improve our speed, guest experience, and efficiency throughout the business.”