After its invention in the late '40s, the full-service gas station quickly became the epitome of an excellent customer experience, allowing the driver to remain in their car in comfort while a friendly face took over the job of filling up the tank.
Eventually, this tradition went the way of the dodo, and unless you live in one of the rare states that still require it (such as New Jersey), people these days mostly hop out of the car to pump their own gas.
But what goes around comes around, as the old cliche goes, and now, in somewhat of a post-covid landscape, the full-service approach has come back in many ways, from curbside services offered at just about every large-scale retailer to lightning-fast shipping services as businesses try to compete with Amazon Prime.
Customers who preferred to take matters into their own hands did a fierce 180 during covid, and the change seems to have stuck, leading retailers to question what else they can offer to appeal to folks who love the time they save with curbside pick-up.
Target (TGT), which recently expanded its drive-up service capabilities due to their popularity, has now come up with a pretty clever add-on for the service, and it's most likely coming to a location near you in the very near future.
Image source: Starbucks
What's New at Target?
As the retailer promised in an announcement back in February, it is rolling out a cool new feature for customers coming to pick things up using its drive-thru services: Starbucks (SBUX) orders, delivered right to your car.
The service has already been rolled out to 20 of Target's locations, including California, Delaware, Minnesota, New Jersey, Pennsylvania, Texas, Washington, and West Virginia.
If the service is available in your area, once you place a drive-up order via the Target app and indicate that you're on your way to pick it up, the app will display a pop-up offering the option to add on a Starbucks order. When you arrive, the drinks and/or food items will be delivered to your car along with your Target order.
While the retailer has not announced what stores are next up to get this service, it has said that the rollout will continue to expand across more locations as it collects customer feedback and tweaks its offerings.
Target Aims To Be a Mini-Mall
Target showed the strain of inflation fears and supply chain difficulties in its Q3 earnings call in November, with CEO Brian Cornell citing a myriad of issues the company is facing.
"Q3 profitability came in well below our expectations, driven by several factors. First and foremost, we faced an unexpected gross margin rate headwind from a higher-than-expected mix of promotional sales, as guests moved away from full-price purchases," Cornell said. "In addition, like the rest of the industry, we're facing a growing financial headwind from shortage, which is running hundreds of millions of dollars higher than a year ago. Along with other retailers, we've seen a significant increase in theft and organized retail crime across our business."
However, the retailer clearly has a plan to combat these issues. It's making some big strides this year in diversifying its in-store experience, overhauling its beauty section to create a more boutique feel as well as partnering with Ulta (ULTA) to carry its products. It's also working on launching larger stores with significantly bigger backroom fulfillment space, which is a key part of an initiative to improve upon the chain's capacity for same-day delivery.
