Leading big-box retailers tout in-store pickup as a service valued by customers that’s driving ecommerce growth. In Target’s Q2 2019 earnings announcement—which saw the company beat on the top line, bottom line and raise guidance—CEO Brian Cornell called out click-and-collect as a key source of the company’s momentum. “In our digital channels, we continue to see the most rapid growth in our same-day fulfillment options, in-store pickup, Drive Up and Shipt, which together have more than doubled their sales in the last year,” he said. “These options offer speed, convenience and reliability, and as a result, they are quickly becoming the preferred fulfillment choices for our guests.”
Rakuten Intelligence data from the 2018 holiday season underscores how this effect manifests in the lead-up to Christmas. Between December 17 and 20, Walmart, Target, Best Buy and Kohl’s had a combined daily market share of 9.2% to 9.5% during those days. During each of the next four days leading up to Christmas, their combined share reached double digits, peaking at 13.2% on December 23.
With the likelihood that unfulfilled gift purchases linger closer to the Christmas deadline, these late-season market share gains should become even more concentrated to wrap up the 2019 online holiday shopping season.