Shipt with Target set to launch in Twin Cities

Following its acquisition late last year of membership-based grocery marketplace Shipt, Target is to begin offering same-day delivery in its own backyard of Minnesota.

From next month, Shipt will make deliveries across the Twin Cities metro area. It will do this from approximately 50 Target stores and will reach around 1.2 million households. To support the roll-out, the two companies are looking to hire as many as 4,000 shoppers and delivery people in the Twin Cities.

“Same day delivery was at the top of our list when we were thinking about ways to make shopping at Target even easier,” says John Mulligan, Executive Vice President and Chief Operating Officer, Target. “Shipt’s personalised, customer-focused approach fits perfectly with our commitment to deliver a convenient, exceptional experience and we’re excited to begin offering same day service in our own backyard of the Twin Cities.”

Initially, about 55,000 items, or more than half of a typical Target store, will be available for delivery through Shipt, which charges an annual membership of $99 for unlimited deliveries of over $35. New members who sign up prior to 1st March will receive an annual membership for $49. Target is looking to get the rest of its inventory on the platform later this year.

The Shipt deal, at $550 million one of the largest acquisitions in Target’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.