Target CEO opens up on e-commerce ideas

Target’s CEO Brian Cornell has been giving his views on the business opportunities offered by e-commerce and storage lockers at the Code Conference taking place in Rancho Palos Verdes, California. Although digital sales accounted for less than 3% of Target’s $13.4 billion revenue for the first quarter, Cornell said that he sees a “huge upside” to this side of the business. According to re/code, Cornell said his goal was to keep the digital sales growing at around 40% a year.

In order to fuel that growth, Target has been ramping up its incentives to drive more customers through the digital channel. In February, it announced that it had halved the minimum order required for free shipping – down from $50 to $25 – and it also offers free shipping on virtually all online purchases when customers use a Target REDcard.

Cornell acknowledged that Amazon was “one of the many competitors” that his company has to face – but he said that Target “almost needs to say thank you to Amazon”.

“They have taught the American consumer to shop online, but they don’t own that relationship,” explained Cornell. “Our most profitable and our most valuable guest is the one who shops with us both online and in the store.”

Cornell said that he was also keen on the Click & Collect and storage lockers, which allow customers to pick up goods they have purchased online at their own convenience. “I like this locker concept,” Cornell commented. “I can envision in the future lockers will play a role.”

The Target CEO also told media at the show that “Uber could be a partner someday”. As previously reported on Post&Parcel, Uber has recently been talking about its nascent Merchant Program and in November last year the company hired Tom Fallows, the former head of Google’s same-day delivery service.