Please ensure Javascript is enabled for purposes of website accessibility

Target Plans to Test Drive-Up Alcohol Sales, Fresh Grocery Pickup

By Daniel B. Kline - Mar 4, 2020 at 3:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The discount retailer continues to focus on making shopping as easy and frictionless as possible for its customers.

Target (TGT 2.46%) wants to make shopping at its brick-and-mortar stores even easier for people, and its drive-up and curbside pickup options have been major parts of that strategy. The retailer, however, only offers a limited selection of goods for drive-up, and customers have been asking for more, COO John J. Mulligan said during the chain's fourth-quarter earnings call.

"Time and time again, they tell us they love Drive-Up, but it sure would be nice to pull up for their order, and a gallon of milk, not to mention adult beverages," he said. "Whether it's a six-pack and chips on the way to a party or a bottle of wine to go with the box of diapers and crying kids in the back seat, our guests want that option."

A target employee loads an item into a car.

Target plans to expand its curbside pickup selection. image source: Target.

Give the people what they want

Offering fresh groceries for curbside pickup requires different logistics than selling items that don't require refrigeration. And selling alcohol that way comes with additional issues, including making sure the purchaser is 21, and ensuring that stores are following different states' and municipalities' varying laws.

Target, however, feels ready to deal with those problems, so it's beginning to test offering fresh groceries and alcohol pick-up. Mulligan detailed how the plan will roll out.

"We'll start in a few states and learn how to do it well before we scale fresh pickup to nearly half of our stores and take adult beverage to the majority of the chain, all by fourth quarter," he said.

These moves by Target are all about making customer convenience a greater priority, and the chain's results so far have demonstrated that's something consumers really want. Improving the curbside pickup selection should increase its sales, and could even help the company gain market share from less nimble rivals.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Target Corporation Stock Quote
Target Corporation
TGT
$150.42 (2.46%) $3.61

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.