Looks like Target is stepping up their game in the hopes of competing with Amazon’s growing dominance over online retail. Outside of carrying just about everything in their inventory and offering their own versions of popular electronics (tablets, speakers and more) that keep you running back for more, Amazon’s ability to ship things out quickly for free (especially for Amazon Prime members) has secured them quite the stronghold.
Now, Target has agreed to purchase Shipt, a delivery company specializing in grocery, for $550 million (the second company they acquired this year specializing in such). This will help unlock new capabilities for Target, allowing them to offer affordable or free same-day delivery to their customers. Amazon has been growing their abilities to do the same with special delivery lockers, and other means of getting things from their warehouses to you as fast as possible. Target however already has stores spread all over the country, and this could allow them to deliver directly to you from the nearest store.
“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,” said John Mulligan, Target’s chief operating officer.
Target has a variety of products in their stores, similar to Walmart, allowing them to get both grocery and other retail product to you using these new means of delivery.
Imagine you are getting ready for a big family event for later in the evening and you find you are missing a few items you need during your preparation. Simply make an order and move on to other tasks until they arrive from the nearest store.
They plan on being able to offer same-day delivery from at least half of their stores across the company by next summer. It will be offered as part of a yearly membership like Amazon does, for the cost of $99 (a year) for unlimited deliveries.
As early as next spring, you will be able to visit Shipt.com to find out if it is available in your area yet.
Shipt said they will continue to operate independently and thus hold onto their previous contracts with companies like Costco and Kroger who are partnered with their services. They will work on expanding their partnerships to additional companies in the future as well.