Target To Attract Customers With Curbside Pickup Program

Target Corporation (NYSE:TGT) , which has taken several strategic initiatives to drive performance, recently launched curbside pickup program, at 50 Twin Cities stores. This program gives customers an option to get their ordered items without leaving the comfort of their cars.

To avail the service the customers need to place orders via the latest version of Target’s app and then select “Drive Up”. Target will inform the customers when the order is ready for delivery. Once the shopper arrives to the chosen parking spot outside the Target store, an employee will bring the order to the vehicle.

Over the summer, the company has been testing the curbside pickup program with its employees at some of the Twin Cities stores. This is not for the first time that the company has come up with curbside pickup program. In 2014, Target tested the program but had to scrap it later on.

Other Strategic Initiatives

With the objective of capitalizing on the booming online grocery delivery market, Target is expanding Target Restock to eight new markets. Notably, Target Restock is a next-day delivery service, which the company had launched in June. Customers opting for next-day delivery services will have to shell out nearly $5 to avail the service. The company began this service in Minneapolis but latter on expanded it to Denver as well as Dallas markets in the month of August. Following the recent expansion, the service will now be available in Atlanta, New York, Chicago, Philadelphia, St. Louis, Los Angeles, San Francisco, and Washington D.C./Baltimore.

The Zacks Rank #3 (Hold) company’s initiatives such as the development of omni-channel capacities, diversification and localization of assortments along with emphasis on flexible format stores bode well for the stock. The shares of Target have outpaced the industry in the past three months. The stock has advanced 11.9%, outperforming the industry’s gain of 8%.

Management plans to expand merchandise assortments with special emphasis on Style, Baby, Kids, and Wellness categories that are performing well. Moreover, Target is also concentrating on rationalization of supply chain, technology and process improvements. These initiatives aided it to continue with upbeat performance in fiscal 2017 as reflected from impressive second-quarter results and an encouraging earnings outlook.

3 Stocks Occupying Retail’s Centerstage

Better-ranked stocks, which warrant a look in the retail sector includes, Costco Wholesale Corporation (NASDAQ:COST) , Tilly's, Inc. (NYSE:TLYS) and Burlington Stores, Inc. (NYSE:BURL) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Costco Wholesale has an impressive long-term earnings growth rate of 9.5%.

Tilly's delivered an average positive earnings surprise of 83.7% in the trailing four quarters.

Burlington Stores delivered an average positive earnings surprise of 17.7% in the trailing three quarters and has a long-term earnings growth rate of 16.2%.

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