Target announces major same-day delivery acquisition
Target is to buy Shipt, a membership-based grocery marketplace and same-day delivery platform that allows customers to place online orders for fresh food and household items from nearby stores. The deal, at $550 million one of the largest acquisitions in the retailer’s history, is part of a supply chain/digital strategy that has also included launching Target Restock and Drive Up, acquiring Grand Junction, a last-mile transportation technology company, and expanding ship-from-store capabilities to more than 1,400 stores nationwide.
“By acquiring Shipt, we’ll be able to take advantage of our network of stores and Shipt’s technology platform and shopper community to quickly offer same-day delivery to millions of our guests. In early 2018, about half of our stores will offer same-day delivery of groceries, essentials, home, electronics and other products. And that’s just the beginning. By the end of 2019, we’ll offer same-day delivery on all the major product categories at Target,” says John Mulligan, Target’s Chief Operating Officer. “If you look at the big picture, this acquisition will mark an important milestone in an ambitious strategy we laid out in early 2017, which included strengthening our supply chain and digital capabilities to make shopping at Target easier, more reliable and more convenient for our guests.”
Bill Smith, CEO and founder of Shipt, says: “It’s win-win for us. We get to continue growing this company we love, at a more accelerated pace. With Target’s support, we’ll be able to reach more customers in more markets across the country. We’ll also continue to grow our marketplace approach with new and existing partners, a strategy that drives scale and efficiencies for all.”