Costco’s $20 threshold and Target workforce cuts escalate retail competition
Costco cut its e-commerce free delivery minimum to $20, undercutting Walmart and Target’s $35 threshold and boosting its digital competitiveness. Separately, Target announced a workforce reduction following consumer boycotts and a recent CEO transition, aiming to streamline operations.
1. Costco lowers its free delivery threshold
Costco reduced its free shipping minimum order requirement from $35 to $20 on February 12, aiming to attract smaller online purchases and increase order frequency. This change is expected to reduce cart abandonment, drive incremental digital sales and apply pricing pressure on Walmart and Target.
2. Target trims workforce after leadership change
Target announced reductions across its corporate and support roles following consumer boycotts and the appointment of a new CEO earlier this month. The company stated the move is designed to streamline operations, reallocate resources toward growth initiatives and bolster profitability.