Target said Wednesday that it will use Shipt’s proprietary technology platform and community of shoppers, along with its store network, to quickly and efficiently bring same-day delivery to consumers nationwide.
Plans call for Target to offer same-day delivery services to customers at about half of its stores by early 2018, and then in most stores and in all major markets before the 2018 holiday season.
Initially, same-day delivery will include groceries, essentials, home, electronics and other products, according to Target, which aims to expand the array of products offered over time. By the end of 2019, same-day delivery will be offered all major product categories, the retailer 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,” Target executive vice president and chief operating officer John Mulligan said in a statement. “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.”
Target said it also plans to leverage Shipt’s expertise as it bolsters its own supply chain. That effort will include integration with Grand Junction, the transportation technology company that Target acquired in August.
“By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery,” Mulligan added, “and Shipt’s service-oriented approach aligns well with Target’s commitment to delivering an exceptional shopping experience for our guests.”
Under the agreement, Shipt will become a wholly owned Target subsidiary and continue to run its business independently, Target reported. Shipt also will continue its plans to expand partnerships with other retailers seeking same-day, last-mile capabilities. Bill Smith, founder and chief executive officer of Shipt, will remain in his current role and report to Mulligan.
Target said the transaction is expected to be completed by the end of the year, pending customary closing conditions.