Target Plans for Same-Day Delivery Service With Shipt Acquisition

Target has announced its plan to acquire Shipt, a leading online same-day delivery platform, for $550 million in cash. With this game-changing acquisition, Target now has the ability to leverage its network of stores with Shipt’s proprietary technology platform and community of shoppers to bring same-day delivery service across the country. At the time of the announcement, Target expected the acquisition would significantly accelerate digital fulfillment efforts, allowing for same-day delivery service to customers at approximately half of Target stores by early 2018, which would be anytime soon. The company experts the service to be offered from the majority of Target stores in all major markets before the 2018 holiday season. To start, Target will offer same-day delivery of groceries, essentials, home, electronics and other products. Expansion of other products will be gradually rolled out over time. And by the end of 2019, it is expected that same-day delivery will be available for all major product categories at Target.

“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. 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,” said John Mulligan, executive vice president and chief operating officer for Target. “By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery, and Shipt’s service-oriented approach aligns well with Target’s commitment to delivering an exceptional shopping experience for our guests.”

“We are very excited to partner with Target, one of the most loved retailers in the country with a reputation for supporting local communities. Partnering with Target and the national scale they provide allows Shipt to further accelerate our growth, bringing our service to more people, in more markets across the country,” said Bill Smith, Shipt’s founder and CEO. "We’ll continue growing our marketplace and membership base, working with a variety of retailers to drive scale and efficiencies. We look forward to introducing Target guests to the convenience of our same-day delivery services, with the level of personal attention only Shipt can provide."
Minneapolis-based Target serves guests at 1,834 stores and at Target.com. Shipt, the nation's fastest growing online grocery marketplace, works with leading retailers and local stores to deliver groceries via a community of shoppers and a convenient app.