Target Ends Subscription Service

Target discontinued its subscription service model this month as more shoppers turn to same-day fulfillment services. A FAQ page within target.com communicated the online auto-replenishment service would end this month, but orders created before the shutdown would be fulfilled. The page also steered shoppers to the retailer's same-day fulfillment services: Drive Up curbside service, in-store Order Pickup and home delivery via subsidiary Shipt.Target's subscription service launched in 2013 with a focus on baby-care products and later expanded to include items such as household products. All subscription orders came with free shipping and a 5% discount while RedCard members saved 15% on subscriptions for baby SKUs. “The majority of our subscription [shoppers] have shifted away from regular deliveries to enjoy the speed and flexibility of our same-day services,” Target spokeswoman Jacqueline DeBuse told Bloomberg.The news on shuttering the subscription service came days before Target reported its same-day fulfillment services grew 217% in its third quarter (ended Oct. 31) compared to last year, adding more than $1 billion in incremental sales. Drive Up alone was responsible for nearly $700 million of this growth, increasing more than 500% compared to the same period last year.Drive Up's growth in the third quarter was not at the expense of Target's other fulfillment services. Order Pickup increased 50% and Shipt grew nearly 280% in the third quarter compared to last year, accounting for more than $200 million in incremental sales.Target has been steadily investing in its fulfillment services, especially Drive Up. The retailer, for example, recently:updated its mobile application to add additional safety measures to its Drive Up curbside pickup service, (see "Related Updates" below)more than doubled the number of designated Drive Up spaces, adding nearly 8,000 additional spaces, andadded fresh and frozen items to the selection of products available for through the service in more than 16,000 stores.

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