Retailers like Target are increasingly transforming into small distribution centers, shipping items to customers' homes and serving as a pick up location for online orders, reports the Chicago Tribune.
These retailers must straddle the line between retail and e-commerce, deciding how to divvy up stock between in-store and online shoppers.
Target often shuts down online sales from specific store locations when inventory dips to prevent customers who do travel to the store from leaving empty-handed and disappointed.
Target will often shut down online sales for some items when a specific store's inventory falls below of certain threshold, said Target spokesman Eddie Baeb. By depriving online shoppers of the order pickup or ship-from-store options, Target keeps shelves full in its stores and ensures in-store customers do not leave disappointed or empty-handed.
"When a customer comes to the store, there's an expectation they're carrying items home in a basket, not getting them shipped. We're really trying to fill that need," said Mr. Baeb, according to the Tribune.
This system also acts as a buffer in case Target's inventory systems aren't updating and reduces the chances the retailer will accidentally sell the same product to two different customers, according to the report.
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