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

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.