Retail

Converting Fans to Target’s Own Grocery Delivery Service May Be the Ticket to Growth

Target’s last earnings call revealed better-than-expected numbers during the crucial holiday sales period as its in-house brands and easy delivery options grew traffic to its strongest numbers in more than a decade.

Given the retailer’s leaps and bounds of growth, the results of a recent CivicScience study should be no surprise.

In May of 2019, more than 60% of American adults have a favorable opinion of shopping at Target. Only 10% of the 18+ population has an unfavorable opinion. That’s huge for any retailer, but not surprising considering Target’s footprint across the U.S.

Pulling in age data, an uptick in Target’s favorability was driven by all age groups (an overall increase in the population’s view of the Target shopping experience), but it was mostly propelled by younger folks. We saw this upswing being driven by Millennial women in another recent study, and the retailer’s build out of in-house brands has certainly driven this growth. 

One thing hasn’t necessarily changed for the retailer, though: Consumers shopping for groceries there has remained quite stagnant over the past two years.

But converting fans to Target’s own grocery delivery service may be the ticket to grow this baseline.

Seventeen percent of Target favorable consumers have plans to try grocery delivery. This could fare well for the brand if it can convert them to its own delivery membership model.

As mentioned, Target’s overall favorability has only grown, especially from where it was this time two years ago. It doesn’t appear to be stopping any time soon.

Target’s future is looking good, and we wouldn’t be surprised if it announced new brands this year and new delivery options to get more converts.

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