Target Ends Subscription Service
Target discontinued its subscription service model this month as more shoppers turn to same-day fulfillment services.
A FAQ page within target.com communicated the online auto-replenishment service would end this month, but orders created before the shutdown would be fulfilled. The page also steered shoppers to the retailer's same-day fulfillment services: Drive Up curbside service, in-store Order Pickup and home delivery via subsidiary Shipt.
Target's subscription service launched in 2013 with a focus on baby-care products and later expanded to include items such as household products. All subscription orders came with free shipping and a 5% discount while RedCard members saved 15% on subscriptions for baby SKUs.
“The majority of our subscription [shoppers] have shifted away from regular deliveries to enjoy the speed and flexibility of our same-day services,” Target spokeswoman Jacqueline DeBuse told Bloomberg.
The news on shuttering the subscription service came days before Target reported its same-day fulfillment services grew 217% in its third quarter (ended Oct. 31) compared to last year, adding more than $1 billion in incremental sales. Drive Up alone was responsible for nearly $700 million of this growth, increasing more than 500% compared to the same period last year.
Drive Up's growth in the third quarter was not at the expense of Target's other fulfillment services. Order Pickup increased 50% and Shipt grew nearly 280% in the third quarter compared to last year, accounting for more than $200 million in incremental sales.
Target has been steadily investing in its fulfillment services, especially Drive Up. The retailer, for example, recently:
- updated its mobile application to add additional safety measures to its Drive Up curbside pickup service,
- more than doubled the number of designated Drive Up spaces, adding nearly 8,000 additional spaces, and
- added fresh and frozen items to the selection of products available for through the service in more than 16,000 stores.