Target US is making shopping easier for customers with the option to make product returns right from their cars at no extra cost. This is one of the latest enhancements to the retailer’s popular ‘Drive Up’ service.

The new returns service is already available at over 500 stores across the US and is expected to reach all 2000 Target locations in the next few months.

Once the service becomes available at a local store, customers can use it via the Target app. The service is available free of charge for purchases made online or in physical stores, and customers can return most new, unopened items within 90 days of purchase, or up to a year for Target-owned brands. 

The story so far

Target first launched ‘Drive Up’ in Minneapolis, where the company is headquartered, in 2017, as an extension to its in-store pickup service, and it has evolved ever since then.

According to CNBC, the company is upgrading its curbside pickup service in order to attract and retain customers ahead of a potential slowdown and to hang on to gains made during the pandemic period.

The curbside pickup service became a big sales driver for Target during the pandemic as shoppers tried to avoid crowds. According to the publication, the habit has stuck as work and home schedules have become more hectic.

According to data from Euromonitor, click-and-collect grew from 6 per cent of overall e-commerce sales in the US in 2019 to 11 per cent in 2022.

The market research firm predicts click-and-collect sales will grow by 8 per cent in 2023, and the growth is expected to be driven by customers who prefer to avoid delivery fees or shipping costs during this period of high prices.

Removing friction points

Lyndall Spooner, CEO at Fifth Dimension Consulting, believes that Target is trying to remove customer experience friction points by making the process of returning items more convenient, easier and faster. 

“They are doing this to try and make customers happier to shop at Target to boost their sales. They are offering this service exclusively to customers who have downloaded their app – in theory their most loyal customers,” she told Inside Retail.

Nonetheless, she questioned whether this service will be a game changer or help improve sales and customer loyalty during an economic downturn.

“In addition, it could encourage the serial returners to continue with that behaviour or worse increase their returns. These types of services all come at a cost for the business – is this the best place to be investing right now?,” she asked.

Potential pitfalls

Spooner believes there are many potential scenarios that could make returning items at the curb more challenging than picking up an order. . 

“Can customers drop-off anytime or do they have to select a service window/time? What if they are running behind serving customers, will it take longer than going into the store? What if a customer is caught in traffic and is late or misses their spot?,” she questioned.

Moreover, what will happen if there is a disagreement on whether or not something can be returned? In order to settle disputes, managers may need to be present curbside, and this could lead to staffing issues.

“There are many factors that could drive new points of friction in the customer experience and make it a negative experience,” she noted.

Keep it simple

Spooner added that the curbside service could potentially increase complexity and costs.

“Target is not a premium brand so how will they continue to pay for these services when in reality more expensive products will have a detrimental impact on sales with costs rising across customer service channels,” she elaborated.

She believes that retailers should simplify their operations and deliver great, consistent experiences via their chosen channels. 

The future

Spooner believes that the most important area to improve the customer experience is the delivery process. 

“In the future it is likely we will have our own personal assistant on our phone. The AI will do the hard work for us finding, recommending and buying products on our behalf and organising them to be delivered to us at a convenient time and place,” she said.

With this in mind, retailers should focus on delivering unique in-person experiences if they want to have a direct relationship with their customers.