Target would also follow in Temu’s footsteps: they would innovate with direct delivery

By: Trademagazin Date: 2025. 06. 26. 11:31

The American discount chain Target is working on a new business model – at least that is what the foreign press reports suggest. The company is reportedly planning to ship certain household and clothing products directly from the manufacturer to the customer, bypassing traditional store logistics. This move would almost exactly copy the drop shipping model already successfully used by Chinese Temu and Shein, VG points out.

Target has not yet officially commented on the news, but according to an article in the American Origo, the chain’s 1,900-store revenue has fallen short of expectations in recent years. The stagnant performance may partly be due to consumers increasingly turning to Temu and Shein-type platforms that offer fast-response, direct ordering options.

If Target does indeed launch direct shipping, it could bring not only logistical but also regulatory challenges. A growing number of American policymakers are calling for the elimination of the duty-free exemption for packages under $800, which is favorable to Temu and other similar platforms. This exemption currently allows smaller-value packages ordered from abroad – typically China – to arrive in the United States duty-free. If it is eliminated, not only Temu and Shein, but also American companies that build on a similar model, such as Target, could find themselves in a more difficult competitive position.

For Target, however, the new model is an attractive opportunity to reduce inventory and warehousing costs and respond more quickly to consumer demand – similar to how Temu built its own success. The only question is how open American consumers – who have so far chosen Target stores mainly for their quick availability and local presence – will be to direct orders, but with longer delivery times.