In the mad rush for one-day deliveries in the retail world, Target has bought Shipt to achieve its target. The acquisition deal was made for $550 million and Target hopes that it can be on the same track with Amazon and Walmart for same day deliveries.
“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,” said John Mulligan, executive vice president and chief operating officer for Target.
Shipt is an Alabama based startup. Even after the acquisition, Shipt will continue to run its own business, independent of Target, sources said. With the new deal, customers can expect single day delivery of goods ranging from groceries and ‘essentials’ home products to electronics. Target also plans to one-day delivery more categories by 2019.
“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,” Mulligan added.