In case you haven't noticed, shopping is a little different these days than it was in years past.
COVID-19 has greatly changed the U.S. retail landscape as we know it.
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On the one hand, the pandemic forced many more people to opt for the convenience of online shopping, whether they liked it or not.
Not to state the obvious: yes, retailers like amazon. (amazon.com) It quickly grabbed market share in person, as brick-and-mortar giants like Target (TGT) Walmart (WMT) and the best purchase (BBY) were forced to close, at least temporarily.
But the online shopping trend had already largely taken hold before COVID-19. Lockdowns and fears about social distancing only marked the beginning of the inevitable.
And when those brick-and-mortar giants finally reopened, the in-person shopping experience was very different.
The aisles at places like Target were far more cashierless checkouts. In some areas, it seemed as if at least the first one-sixth of the parking spaces were reserved for customers picking up their items in-store and preferring not to shop in person. And nearly every major retailer has locked up at least some of their inventory to prevent theft and shrink.
Shopping in stores is very different now
Of course, all of these changes were made in stores that managed to keep their doors open. Many others struggled to stay relevant, liquid, or both.
Last year saw an unprecedented number of bankruptcies, with many retailers, such as Rue 21 and Rite Aid, filing for bankruptcy protection.
Fewer and fewer people are heading to places like the mall to buy their essentials; instead, they're heading to off-price retailers like TJ Maxx. (TJX) for similar quality items or online, where they can find more variety and the best deals. And inventory reduction has affected many traditional operators.
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Rite Aid, for its part, said it lost at least $5 million in 2022 due to inventory reductions at its New York branches alone.
Then-CEO Heyward Donigan explained at the time that “we experienced unexpected headwinds this quarter due to initial losses, particularly in our New York urban stores.”
The pharmacy filed for Chapter 11 bankruptcy in October 2023.
The goal changes a key policy
But it is not just struggling retailers that have been forced to change course to adapt to the changing times.
Target has been no stranger to policy changes in recent months. This spring, it issued a storewide order that it would reduce self-checkout for customers who purchase 10 items or fewer, in an effort to reduce theft, both accidental and intentional.
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Some Target stores have also been considering installing cameras at their remaining self-checkout kiosks, which alert customers if they haven't scanned an item correctly.
Others have instituted age limits at some of the most frequented stores, with one store in the Washington, D.C., area requiring that minors must be accompanied by adults to enter the store.
More retail:
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- amazon launches a cool new subscription product
And now, Target says it will change another key checkout policy, right as it's in the middle of its Target Circle Promotion Week.
Starting July 15, Target stores will no longer accept personal checks at the point of sale. This change will go into effect just after Circle Week concludes, and it is estimated that about 3% of customers still use personal checks to pay for their items.
“Due to extremely low volumes, we will no longer accept personal checks beginning July 15,” Target said in a statement. “We have taken several steps to notify customers in advance to make the checkout experience easier and more efficient.”
These are the payment methods Target will continue to accept:
- Target Circle Cards (formerly known as Target RedCard)
- Money
- Digital Wallets
- SNAP/EBT
- Buy Now Pay Later Services
- Credit and debit cards
Target isn't the first retailer to implement such a change. Discount grocery chain Aldi and organic grocery chain Whole Foods both made similar changes in recent years, citing similar issues like inventory problems and declining popularity as their reasoning.
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