Executive Briefings

Targets Experiments with Four Different Fulfillment Models

Target CFO John Mulligan has confirmed that Target is in the middle of not one but four different fulfillment pilots, including acting as a guinea pig for the same-day-delivery trials of both Google and Ebay. The other Target trials involve pay-online-pickup-in-store, pay-in-store-pickup-at-another-store and pay-online-ship-from-store.

The interesting background to these trials is that Target"”as its name implies"”has always been precisely focused. These trials, as the CFO pointed out, are the chain admitting that many fundamental shopper assumptions may no longer be valid.

"We spent 50 years honing, moving products one direction to our supply chain and ultimately to the back door of the store. Then through the front door and trying to do that as quickly as possible. Now we're moving product different directions depending on what our guest wants and for us, we need to learn how to operationalize that," Mulligan said.

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The interesting background to these trials is that Target"”as its name implies"”has always been precisely focused. These trials, as the CFO pointed out, are the chain admitting that many fundamental shopper assumptions may no longer be valid.

"We spent 50 years honing, moving products one direction to our supply chain and ultimately to the back door of the store. Then through the front door and trying to do that as quickly as possible. Now we're moving product different directions depending on what our guest wants and for us, we need to learn how to operationalize that," Mulligan said.

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