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.