• Target is betting on meeting shoppers’ needs with a variety of fulfillment strategies.
  • UBS analyst Michael Lasser pointed to Target’s improved fulfillment options in a note on Wednesday.
  • But he added a word of caution that the focus on in-store fulfillment could “cannibalize in store sales.”
  • Target COO John Mulligan, on the other hand, said during the retailer’s earnings call on Tuesday that the company’s “stores-as-hub strategy isn’t putting our core business at risk, it’s simply helping us grow faster.”

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Target’s aim proved true on its last earnings call, with the retailer posting its highest annual comparable sales growth in over a decade.

The retailer has succeeded in part by catering to a wide range of customer preferences regarding product fulfillment.

And, unlike online rival Amazon, Target hasn’t had to invest in a string of new warehouses; the chain has kept costs down by making room for fulfillment capabilities in its existing stores.

But UBS analyst Michael Lasser is sounding the alarm that Target’s improved in-store fulfillment strategy could dampen in-store sales.

In response to Business Insider’s request for comment, a Target spokesperson pointed to comments that COO John…