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Target Is Upping Its Curbside Pickup Game With Fresh and Frozen Food

By Jennifer Saibil – Jun 25, 2020 at 11:14AM

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The discount retailer has seen strong digital sales growth as customers flock to its same-day services.

Target (TGT -2.24%) has driven up its revenue with its same-day service options: In the first quarter, in-store pickup, drive-up, and Shipt sales rose 278% year over year, contributing to a 141% increase in overall digital sales. 

Given the popularity of those services, the retailer has decided to make a big addition to the list of products it offers for curbside pickup: fresh and frozen foods.

Fruit section at a Target store.

Image source: Target.

The expanded service covers items in its meat, dairy, and bakery sections, among others, in addition to all the previously available items, and it's free for all customers.

The enhanced program, which Target piloted in the Twin Cities and Kansas City, will roll out in 400 stores in the Midwest by the end of the month. The retailer plans to have fresh and frozen food available for curbside pickup at 1,500 of its more than 1,800 stores by the holiday season. 

Stepping up during the pandemic

Target's sales skyrocketed during the first few months of the pandemic as it was one of the relatively few stores allowed to remain open while most states ordered lockdowns and closures of nonessential businesses. It has implemented stronger health-safety measures across its operations, and it paid bonuses to workers who came to work despite the risks to make sure customers got what they needed.

"The speed and convenience of our fulfillment options are unmatched across the country," said COO John Mulligan, "and they've become even more critical for our guests searching for easy and safe ways to shop during the pandemic. By adding fresh grocery to the pickup services our guests already love, we're giving them even more reasons to shop at Target."

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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