Contact Us

Target Eyes Same-Day Deliveries With The $550M Purchase Of Grocery Delivery Service Shipt

National Retail

In an attempt to compete with retail giants Walmart and Amazon, Target has acquired same-day delivery service platform Shipt in a $550M cash deal.


The retailer will leverage Shipts platform to offer faster and more efficient deliveries for its e-commerce customers. To date, Target has been working with Shipt   rival Instacart to deliver groceries in certain markets. It is not yet clear what will happen to that relationship moving forward, CNBC reports.

Alabama-based Shipt offers a more hands-on approach to delivering goods and keeps close contact with customers during the delivery process to ensure items are picked up, out of stock or en route to their home. This strategy could help Target compete with other retailers by forging stronger relationships with its customer base and providing a more convenient method to obtain items.

"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 Executive Vice President and Chief Operating Officer John Mulligan said in a statement.

The service, which will begin early in the new year, will include the delivery of groceries, home furnishings and electronics. By 2019, Target hopes to use Shipt for the majority of its product categories, CNBC reports.

Despite the acquisition, Shipt will continue to work with other partners including Costco, Kroger, Meijer and HEB.

The deal is expected to close before the end of 2017.