"We are very excited to partner with Target, one of the most loved retailers in the country with a reputation for supporting local communities. As part of the acquisition, Shipt will be a wholly owned Target subsidiary that will continue to run its business independently. The company leverages a network of over 20,000 personal shoppers to fulfill orders at various retailers to provide delivery within hours in more than 72 markets. "By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery, and Shipt's service-oriented approach aligns well with Target's commitment to delivering an exceptional shopping experience for our guests."įounded in Birmingham, Ala., in 2014, Shipt is a membership-based grocery marketplace and same-day delivery platform. With Shipt's network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country," John Mulligan, executive vice president and chief operating officer for Target said. "We laid out an ambitious strategic agenda in early 2017, which included a focus on giving our guests a number of convenient ways to shop with Target, whether it's ordering online and picking up in one of our stores, driving up to pick up an order, or taking advantage of services like our new Restock program. Approximately half of the stores will provide the service by early 2018, remaining stores in major markets will see the service roll out before the 2018 holiday season. The retailer will offer same-day delivery on groceries, essentials, home, electronics and other products. The retailer will leverage its network of store’s and Shipt’s technological platform to quickly and efficiently bring same-day delivery to consumers across the country. Will customers bypass Amazon Prime's one- or two-day delivery in exchange for the satisfaction of completing a "Target Run" the same day? The Shipt service may give the chain an advantage for accommodating last-minute shoppers.Minneapolis-based Target has announced it has come to an agreement to acquire Shipt, a digital same-day delivery platform for $550 million in cash. Along with same-day delivery with Shipt, the retailer will offer free shipping "on hundreds of thousands of items" through Dec. Target announced in October that it would spend almost $50 million more than last year on payroll and double its fulfillment staffing during the holiday season. The latest announcement about Shipt comes just in time to encourage mobile ordering during the holiday season. Prior to the acquisition, Target was struggling to keep up with competitors for Thanksgiving and Black Friday traffic, but was seeing an increase in mobile app use during that timeframe.
Shipt has also expanded same-day delivery to CVS and Petco this year. Still, Target has been able to scale its acquired delivery arm quickly, boasting an annual membership fee of $99 that beats that of Amazon Prime. Target announced plans to expand same-day delivery via Shipt to all of its major product categories last December, following its 2017 acquisition of the delivery platform for $550 million. Orders can be placed on behalf of someone else, to deliver a gift or assist someone who can't get to the store, per the announcement. Leading up to the Thanksgiving holiday, Target will offer free same-day delivery of orders over $75 beginning this Sunday and running through Nov.
However, for consumers who have yet to sign up for a Shipt membership, Target is offering a free four-week trial. For consumers looking to use fast deliveries more frequently, Target offers Shipt membership plans, which cost $99 annually for unlimited orders of $35 or more. The retailer touts that membership is not required to access fast delivery, though delivery costs $9.99 per order. Guests who shop on the Target app can choose same-day delivery for 65,000 items, including toys, baby-care products and groceries. Using the Target app, customers can elect to use Shipt in order to receive same-day shipping, with some orders arriving to doorsteps in as little as one hour, according to a company blog post. Target on Thursday announced it will expand customer access to same-day delivery through Shipt.
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