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The Minneapolis / St. Paul Business Journal reports that Target “is reducing the delivery fee of Restock, its next-day service for household essentials,” from $4.99 to $2.99.

The move comes as Amazon’s membership fee for Prime has gone by 20 percent from $99 a year to $119.

According to the story, “Target hasn't said how many customers use Restock — analysts noted that the company lately has been talking more about its same-day grocery-delivery service, Shipt, which it bought in December — but it continues to expand the service. Restock is now available in 60 metro markets.

“The company is also making Restock free of charge for members of its Redcard program. Growth of Redcard has slowed recently - to the point that Target is experimenting with other loyalty programs - and this would give customers who haven't picked up the card yet another reason to do so.”
KC's View:
It is a good time to lower prices. But Restock isn’t the same as Prime … it is more like an attempt to mimic Subscribe and Save and Amazon’s Dash buttons.

But, it isn’t nearly as frictionless as those two Amazon services. It is the right direction, but doesn’t go nearly far enough … because automatic replenishment remains a great differentiator for Amazon that virtually nobody in the grocery segment has tried to compete against.