Shipping As Execution Advantage

That last mile of life, whether it is cable service to your home or shipping, is where opportunity lies in wait for smart companies to take advantage.

Enter now the story of Target stores.

Target, on the back end of hard times, has made its online business into a real business, but has made it even better with its same day delivery.

This resulted in a 31% increase in online sales last quarter which propelled its stock price up 15%. Look at this stock chart for YTD 2019. Wow!

Here’s the big thing; 80% of that 31% in online sales growth came with same day delivery or pickup.

How did Target do it, Big Red Car?

Easy, dear reader, Target ships from one of its stores which is going to be very close to where you live.

Other same day shippers — like Amazon or Walmart — ship from a fulfillment warehouse that may be a long way from your home. [Don’t understand fully why Target can do this and Walmart cannot.]

This resulted in the shipping cost for Target to decrease — DECREASE — for same day delivery by 90%.

And, that, dear reader, is how shipping, even same day shipping, can become an execution advantage.

Well played, Target.

But, hey, what the Hell do I really know anyway? I’m just a Big Red Car. Be well.