Contactless Convenience: Target's Drive Up Now Enables You to Get a Latte On Checkout

Covid-19 Growth in Curbside Pickup Spurs New Convenience Options

Target (NYSE: TGT) is offering new convenient shopping options for shoppers at some locations this year, doubling down on its Drive Up curb delivery service where consumers can enjoy Starbucks coffee without leaving the car. While the popular retailer did not offer specifics on where it will be offering this new add-on convenience or when it will roll out the new service, Target said the company plans to scale up this feature nationwide. Target already offers Starbucks drinks at cafes located at many of its larger stores.

Target shoppers have increasingly opted for curbside delivery during the pandemic for store items and online purchases for safety and to minimize direct contact with other consumers and Target employees. Target also offers the convenience of safe same-day home delivery through its service, Shipt. As a result, Shipt grew almost 60 percent in the third quarter of 2021.

© Joe Raedle, Getty Images. A Target employee delivers an order to a drive up customer in Miami, Florida.

Target shared that customers requested Starbucks pickup and returns. The new service does not require a pickup window for either coffee deliveries or product returns. Target plans to add more merchandise and features to the Drive Up service, including fresh groceries, frozen goods, and alcohol.

The company intends to use its 2,000 stores as fulfillment hubs to drive its range of contactless same-day services, including Order Pickup, Drive Up, and Same Day Delivery with Shipt. Target’s digital business grew 200 percent from just a year ago, with these contactless services accounting for more than half of those sales.

Since the pandemic, other popular retailers like Amazon and Walmart have also seen massive digital sales and home delivery growth. Amazon offers both food delivery from Amazon Fresh and Whole Foods and new grocery stores, while Walmart has its service for both groceries and retail products delivered to the home.

Apple's Ongoing Response to COVID-19

From closing Apple retail stores outside China till March 27 to working remotely and even hosting WWDC online this year, Apple is taking numerous steps to mitigate risks posed by the spread of the coronavirus

When news of the coronavirus COVID-19’s contagious spread from Wuhan, China to the rest of the world, Apple among other companies with a large presence in China was quick to take action. Now two months later since the Chinese government publicly announced the spread of COVID-19, many areas in China that were closed down have now reopened for business. However, as the virus continues to spread at an alarming rate around the globe, with fatalities, Apple has preemptively closed down all of its retail locations from Apple stores to associated warehouses outside of China till March 27th of this year. This shut down may last longer if the situation does not improve. More than 60 other retailers have also temporarily shut down to stop the community spread of the coronavirus, including well known and popular retailers from Nike to Sephora, L.L. Bean, J.Crew, Bloomingdale’s and more, according to Business Insider. Given the evolving nature of this situation, Apple has also issued a statement available on the home page of its website Apple.com.

“Our retail stores are closed until further notice. We are committed to providing exceptional service to our customers. For purchases with fast and free delivery, shop here on apple.com or the Apple Store app. For service and support, go to support.apple.com or call 800-275-2273. We look forward to seeing you soon.”

— Apple

Apple’s Worldwide Developers Conference (WWDC) will be held online only this year and be entirely digital. Numerous other large events from SXSW to football games have also been canceled as organizers and local government aim to prevent the easy spread of the virus in community settings.

Apple’s stock AAPL took a hammering with the advent of the coronavirus COVID-19 in mid February, which the company forewarned in its investor guidance report earlier this year. Apple is not alone in facing this crisis, as the effects of the spread of the coronavirus COVID-19 has led to a shutdown in operations for many companies worldwide. Stock indices from Dow Jones to the NASDAQ initially plunged in response, with concerns of a potential economic recession underway. The effects of being part of an interconnected global economy with its upsides and downsides, could be felt across all stock indices.

The Federal Reserve has cut interest rates down to zero and injected capital into the economy to prevent this. Other economic measures in discussion include a stimulus package to provide some income for Americans who are unable to work during this period as areas for community gatherings are being shut down to prevent the virus’s spread; and a potential payroll tax cut. WSJ reported that the federal government seeks to send $1,000 checks to Americans as part of the $850 billion stimulus package proposed by the White House. The White House also released its guidelines for self-care and protection against the coronavirus, in accordance with the Center for Disease Control (CDC) guidelines. Individual states are also taking measures such as delaying collections on late bills for utilities in colder regions of the country such as Vermont to ensure residents have access to electricity and heat, and requiring “shelter in place” to restrict the spread of the disease in the San Francisco Bay Area. Stocks have now rebounded with news of a potential stimulus plan, with the Dow Jones increasing by as much as 1,000 points.

Apple’s stock has rebounded since then, showing an uptick as of March 17, 2020.

Companies like Google have moved their entire North American workforce to working remotely to prevent the spread of the virus. Google offers tips on productivity and numerous free tools to encourage collaboration and prevent isolation. Remote work has its challenges, but many companies ranging from Amazon to Twitter, AirBnB, Facebook, Microsoft and more are moving their workforce online as best as possible, according to CNN Business. Apple has also been making this shift, although it has proved challenging in some areas that require on-site work. Apple has also been rapidly updating its remote learning and device management options.

While the virus spread seems to have slowed down both in China and South Korea where the highest numbers of cases were initially reported, COVID-19 continues to spread around the globe. John Hopkins University’s Systems Science and Engineering (CSSE) reported over 196,639 confirmed cases, with 80,840 recoveries and 7,893 deaths as of March 17, 2020. COVID-19 has been declared a global pandemic by the World Health Organization (WHO) given how easily the disease is spread and since there is no known cure yet. The first clinical trials for a vaccine developed by Kaiser Permanente are now underway in Seattle, WA, according to CBS News. Scientists worldwide are hard at work on developing a suitable vaccine.

Amazon Opens New 4-Star Store in Soho

Featuring some of the most popular items rated 4 stars and above from its website, Amazon’s new 4-Star Store in Soho, NY ties into its bestselling Amazon Prime deals.

As its name implies, Amazon’s new 4-Star Store features top-rated products that have four stars or more in online reviews. The new store that opened today, is stocked with a selection of consumer electronics, kitchen and home items, toys, books, games, and more that have four star ratings or higher.

Further cementing its entry into brick and mortar retail, Amazon’s newest store lowers risks associated with retail sales by showcasing popular products in demand. The store also offers avenues for discovery, going beyond merely stocking most-loved items on Amazon.com, by organizing products into specific categories such as Most-Wished-For, Trending Around NYC, Amazon Exclusives and more.

Prime Benefits

Prime members benefit from Amazon primes while non-Prime members have to pay manufacturer’s suggested retail prices (MSRP). The price tags show both prices, thus reinforcing how much Prime members save.

Showcase Amazon Products

The new store also offers Amazon another avenue to showcase its own products. Customers can play with Amazon Echo and other Amazon devices that they may not have viewed in person before purchasing the items on Amazon’s website.

Amazon’s foray into brick and mortar stores has been strategic and has expanded in recent years. The company’s purchase of Whole Foods brought instant access to hundreds of stores in the United States and boosted Amazon’s entry into one of the largest and most important consumer markets - groceries and household items. The company also has other stores - select bookstores that sell only the most popular books and the innovative cashier-less Amazon Go stores that first launched in Seattle in December 2016.

Amazon Go - Checkout Free Customer Convenience

Without checkout lines, cashiers and registers, Amazon Go lets Amazon customers just get the items they want and leave. Their Amazon accounts are charged afterwards. Amazon Go stores are monitored by video cameras that track your activity.

As a customer, when you enter the Amazon Go store, you start by scanning an app. As you shop, the sensors in the store identify the items in your shopping cart and then charge them to your account when you leave. While the Amazon Go store initially opened to employees in 2016, public versions opened in 2017 in Seattle and Chicago. Over 3,000 Amazon Go stores are expected to launch by 2021.

The convenience for the consumer is obvious as you do not have to wait in line or try to figure out self-checkout machines that often fail to register items smoothly. Amazon benefits too as the company can track your purchasing behavior through the store and see items that you may have been interested in, prior to your final purchase decision. This would increase the recommendations the company would in turn offer you online.

Amazon Go stores stock popular items that you would find in any local store such as snacks, sandwiches, salads, milk, bread, drinks and more. Some of the stores also feature meal kits by Amazon similar to Blue Apron delivery and also a selection of wines, beer and other alcohol. By offering quick service fresh items with an easier and faster checkout experience, Amazon Go can threaten existing businesses and convenience chains ranging from 7-Eleven Inc, Subway and Panera Bread to food delivery trucks and mom and pop stores. The challenge to growing this new high tech chain of stores however is the high cost of hardware per store.

Amazon’s interest in expanding its reach via brick and mortar stores is strong but the company remains committed to only doing so if they offer something new, instead of just repeating what already exists in this competitive and popular consumer market space.

“Our focus is on customer obsession rather than competitor obsession, eagerness to invent and pioneer, willingness to fail, the patience to think long-term, and the taking of professional pride in operational excellence.”

— Jeff Bezos, CEO in Amazon shareholder letter

Some of the world’s greatest companies can attest to this. By putting the customer first, successful brands become synonymous with excellence and drive customer engagement and loyalty.