Digital, e-commerce and delivery speed investments

“Recall that over the last several years, we built a network of downstream supply chain facilities, including 19 direct fulfillment centers, allowing us to reach 90% of the U.S. population with same or next day delivery. Recently, we expanded our assortment in these facilities to allow for faster delivery speeds across more products.”

“We made significant website enhancements to better communicate faster delivery options. Many customers were not aware of our robust delivery options. In the third quarter, we launched a marketing campaign that builds awareness of our faster delivery speeds. While this is just launched, we are seeing the intended results, greater customer engagement, higher conversion and incremental sales.”

“Today, we have the fastest delivery speeds across the greatest number of products in company history.”

“We have invested in a broader assortment across our nineteen DFCs established partnerships with third party last mile providers, and made technology improvements across our two thousand plus stores to better utilize all of our assets for the benefit of our customers.”

“In addition to these in-store investments, our investments in the FTC network have improved the in-store experience by taking many deliveries out of the store, which reduced clutter in the aisles from staged orders.”

“We know that our customers want faster delivery than ever before.”

“Our delivery speeds are now the fastest they've ever been and customers are increasing their spend.”

“We know that driving a superior customer experience, including speed of delivery, drives greater customer satisfaction, higher engagement, higher conversion, Nope. Ultimately, more sales.”

“Those customers benefiting from faster delivery are engaging more and spending more with us across our categories.”

“We've never been in a better in stock and on time and complete delivery with the fastest speed of all time in our delivery rates.”

“We're seeing a double-digit lift in spend with customers who utilize our faster delivery options as they return more frequently to shop in stores and online.”

“This is all a result of our efforts to ship from the best location, which uses machine learning models to determine the optimal delivery mode to maximize speed and efficiency.”

“Turning to total company online comp sales, sales leveraging our digital platforms increased approximately 12% compared to the second quarter of last year.”

“Turning to total company online comp sales. Sales leveraging our digital platforms increased approximately 11% compared to the third quarter of last year.”

“Our faster delivery speeds are resonating with customers and driving greater engagement and sales. We know that as we remove friction from the experience, we see incremental customer engagement leading to greater sales across all points of interaction.”

“Turning to total company online comp sales, sales leveraging our digital platforms increased approximately 11% compared to the third quarter of last year. We're excited about the continued success we're seeing across our interconnected platforms, our faster delivery speeds of resonating with customers and driving greater engagement and sales.”

“We know that as we remove friction from the experience, we see incremental customer engagement, leading to greater sales across all points of interaction.”

“that also enables our live tracking on big and bulky, which customers have come to expect on small items, but to be able to track live of bulky delivery, whether that's a flatbed rolling down with lumber to a job site or an appliance showing up at the home, that's been a really big win for our customers”

“We now have an operations experience manager who is responsible for managing customer service more broadly, including driving uniform operational processes to enhance the interconnected and fulfillment experiences.”

“Sales leveraging our digital platforms increased approximately 11% compared to the fourth quarter of last year.”

“This quarter, we continued to enhance delivery reliability and communication with the rollout of real-time delivery tracking for big and bulky deliveries across all categories.”

“We know that as we remove friction from the experience, we see incremental customer engagement, leading to greater sales across all points of interaction.”

“over 50% of our online orders are fulfilled through our stores.”

“And just this month, we're opening our 11th sort center in the Detroit market, where it's expected to serve more than 3 million consumers. By 2028, this facility is expected to process up to 60,000 packages daily while operating in a smaller-than-average footprint.”

“Altogether this year, our sortation centers have processed 19% more packages than a year ago.”

“A critical aspect of this strategy is faster delivery speeds as local orders processed through a sortation center arrive more than a day faster than our network average. But notably, that increase in speed doesn't require more dollars, as our unit delivery costs from a sort center are about 20% lower than our network average.”

“We're over 11% faster in average delivery time in 2024, nearly doubling our packages delivered next day over last year, a key factor in driving the healthy growth in total shipped package volume, which has more than doubled since 2019.”

“guests repay that ease and convenience by spending a lot more at Target, 20-plus percent more after they start using Drive Up or same-day delivery.”

“We're investing in stores to bring the best of Target closer to more consumers, making it even easier for them to fall in love with our products and experience and to visit Target more frequently.”

“We have a $20 billion digital business that's hitting on all cylinders with nearly 9% growth in Q4.”

“we're excited about our work across our network to speed up package delivery in 2025 and beyond.”

“Recently, we became the first retailer to integrate our app into Apple Car Play. And of course, the service is also available through Android Auto.”

“As Michael mentioned earlier, when guests try our Drive Up and same-day delivery services, they increase their overall spending by an average of more than 20%, including more spending in our stores.”

“It's a model that delivers speed and efficiency in a capital-light manner. And importantly, it's scalable as our digital sales have more than tripled over the last 5 years on largely the same asset base.”

“Last year, even if we narrowly focus on the direct impact of digital sales, the digital channel at Target delivered incremental profit dollars to our business.”

“Inventory reliability is an area where we've made considerable progress. In fact, our out of stocks were lower in every quarter of last year than the year before and the year before that.”

“we saw mid-single-digit growth in our first-party digital business this quarter, led by 36% growth in same-day delivery powered by Target Circle 360.”

“in Q1, our average click to deliver speed was nearly 20% faster compared to last year, one of many factors contributing to our strong digital growth.”

“we fulfilled more than 70% of all Q1 digital orders within a day, a strong base for us to build upon.”

“In Q1, Shipt drivers fulfilled 24% more packages year-over-year, speeding up delivery and reducing costs at the same time.”

“Among our same day services, we're seeing the most rapid growth in Same Day Delivery powered by Target Circle 360, which increased by more than 35% this quarter.”

“it's important to note that an investment in our stores is also an investment in our supply chain due to our unique stores as hubs model.”

“in the first quarter, 96% of our net sales volume was fulfilled by our stores.”

“We also saw continued healthy growth in Drive Up, which now accounts for nearly half of our total digital sales.”

“Within the digital channel, first-party sales grew nearly 9%, led by growth in same-day delivery of more than 27%. On Target Plus, our third-party digital sales platform, we saw nearly 60% growth in first quarter GMV.”

“So it's improving our e-commerce delivery speed and time to the member and convenience is there as well.”

“Costco Logistics completed nearly one million deliveries in Q1, and over 196,000 deliveries last week alone. That was a new record as well. The majority of these deliveries were completed in four days from the members ordering their merchandise online.”

“We continue to make progress with our technology roadmap and enhancements made to the member experience like the ability to check warehouse inventory via the Costco app, are resonating well.”

“Very strong partnerships with both organizations. We have closely looked at what the behaviors of the members were and found great mentality to our member shop frequency goes way up.”

“We made recent changes with things like search functionality and making inventory available through the mobile app, and those changes are certainly members are seeing the benefit of that and commenting positively on the changes that we're seeing. But we know that we're on a technology journey.”

“We are now able to pre-deploy things around the US and have deliveries made in four days which a couple of years ago would have taken us two weeks.”

“Turning to digital and e-commerce, we continue to make progress with our technology roadmap.”

“Costco Logistics had a record holiday season, with over 500,000 deliveries, as we continue to grow share in big and bulky items.”

“The new warehouse tool in our app, which allows members to view local warehouse item availability and prices, had over 43 million visits.”

“Enhancements this quarter included using data augmentation to improve search effectiveness, adding passwordless sign-in to our mobile app, and creating a waiting room for high-velocity items such as Pokémon cards.”

“Based on feedback received from investors, starting with our September sales release, we'll be changing our e-commerce comparable sales metric to now report digitally enabled comparable sales.”

“We continue to grow share in big and bulky items sold online, powered by our investments in Costco logistics.”

“These waiting rooms reduce the traffic from bots, increase the opportunity for members to purchase high-demand items, while improving the speed and the stability of the site during peak traffic periods.”

“As we continue to involve our omnichannel strategy, we've learned that having multiple delivery platforms extend our reach into both urban and suburban areas and helps us drive incremental sales with different types of customers, especially younger generations who are more digitally savvy.”

“In Q2, we added Uber Eats to our list of delivery partners, which also includes DoorDash, Shipt and Instacart, in addition to our last-mile technology partner, OneRail, provides a fully integrated solution available on lowes.com and in store.”

“Whether consumers choose to shop online, in-store, or a combination of the two, we have built a best-in-class market delivery model to deliver big and bulky products like appliances, patio furniture, and grills, allowing us to double the number of next-day deliveries over the past few years.”

“Shifting to online, we drove strong sales growth of 9.5% in Q4, reflected in broad-based improvement across all merchandising divisions, which included record-breaking sales during the Black Friday and Cyber Monday holiday.”

“These investments include a more intuitive user experience in the app and online, more same-day delivery options combined with enhanced AI user experiences.”