In addition to the same-day delivery capabilities, Target also plans to leverage Shipt’s expertise as the retailer enhances its supply chain, including integration with the recently acquired Grand Junction transportation technology company. CEO Bill Smith will remain in his current role and will report to Mulligan. The company also plans to expand its partnerships with other retailers. Shipt will function as a wholly owned Target subsidiary and will continue to run its business independently. Shipt has delivery deals in place with retailers including the Meijer supermarket chain. By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery.”įounded in 2014, Shipt leverages a network of more than 20,000 personal shoppers to fulfill orders from various retailers and deliver them within hours in 72+ markets.
“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. “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,” said John Mulligan, EVP and COO at Target in a statement. After onboarding the Shipt platform and its community of shoppers, Target plans to bring same-day delivery to approximately half of its stores by early 2018.Īt launch, Target plans to offer a limited number of items for same-day delivery, including groceries, essentials, home and electronics, with the goal of expanding to all product categories by the end of 2019. 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.With the $550 million cash acquisition of Shipt, Target has leaped into the same-day delivery battle that has so far been dominated by Amazon and Walmart.
#Shipit target free#
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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