Target has decreased its minimum online order size requirement by half, down from $50 to $25, in an attempt to boost e-commerce sales and remain competitive against industry rivals Best Buy, Amazon and Wal-Mart.
Best Buy and Amazon both currently require a $35 minimum for online ordering while Wal-Mart requires $50.
"Playing catch up is never fun," Target's Chief Strategy and Innovation Officer Casey Carl told Fortune in a recent interview in Minneapolis.
"I've lived that for the last five years, and we'll not let that happen. We'll be seeing around corners far more effectively."
Target made two important industry moves in fiscal year 2014 in order to increase its e-commerce presence: offering free shipping on all orders regardless of size for the holiday season and rewriting 75 percent of the code on its website to make it more appealing for consumers.
Although some investors have raised questions about the possibility of decreased profits garnered through Target's e-commerce platform given its minimum online order requirement change, the company is not expected to suffer financially from the move. Approximately two-thirds of orders placed on its website already quality for free shipping, Fortune also reports.
"The U.S. consumer now views free shipping as a right," Belus Capital Advisors Chief Executive Officer and chief equities analyst Brian Sozzi said, according to the Boston Herald.
"For now, there has to be a minimum. Over time, I think you'll see the companies use their data better and open up more distribution centers, so this minimum won't be in play."
Target was founded in 1902 in Minneapolis.
