If retail has a big three comprised of Walmart, Amazon, and Target, Target serves as the clear bronze medalist on that list. The retailer lacks the billions Walmart has been able to spend to breach the digital advantage Amazon had.
The retailer, for example, could not build out its own same-day delivery system to match its key rivals. Instead, Target built out similar delivery capabilities without spending billions.
In 2017, the retailer paid $550 million to acquire Shipt, a company that deploys contractors to personally shop and deliver food from Target stores on the same day. Shipt also delivers from CVS, OfficeMax, Sephora, and more.
Target built on that purchase and partnered with Uber Eats, DoorDash, and others, giving it a frugal way to match what Walmart and Amazon offered.
On the digital side of the business, Target certainly can't match Walmart and Amazon when it comes to spending, but it has taken two key steps to differentiate its offerings. First, the retailer built out its network of owned-and-operated brands, and now, the chain has added a number of well-known brands to its invitation-only Target Plus online platform.