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Target explores factory-direct shipping model, Bloomberg News reports
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Target explores factory-direct shipping model, Bloomberg News reports
Jun 24, 2025 1:41 PM

June 24 (Reuters) - Target ( TGT ) is exploring the

delivery of products directly to customers' homes from

factories, similar to the Chinese e-commerce rivals Temu and

Shein, Bloomberg News reported on Tuesday, citing people

familiar with the matter.

The move comes at a time when the big-box retailer, similar

to the broader retail industry, struggles with stiff

competition, persistent declines in sales and muted spending

amid tariff uncertainty.

According to the report, Target ( TGT ) is looking to expand its

range of low-cost offerings through this initiative to focus on

lower priced and new products.

The Minneapolis, Minnesota-based company's effort, which is

said to be in early stages, includes products such as apparel,

household goods and other non-food items, Bloomberg News

reported.

Target ( TGT ) did not immediately respond to a Reuters request for

comment.

Competitors such as Temu, which is owned by PDD Holdings ( PDD )

, and fast-fashion giant Shein had earlier benefited from

the service of drop-shipping items directly to customers on the

back of the 'de minimis' exemption.

'De minimis', a legal term referring to matters of little

importance, describes the U.S. waiver of standard customs

procedures and tariffs on imported items worth less than $800

shipped to individuals.

The Trump administration, however, ended duty-free access

for low-value shipments from China and Hong Kong to the U.S. on

May 2, removing 'de minimis' exemption, Temu saw a steep decline

in daily U.S. users last month, compared with March.

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