- 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…