Target launching same-day delivery
Target Corp. is moving quickly to leverage its $550 million acquisition of Shipt.
The discounter announced that it will debut same-day delivery services via Shipt on Feb. 1 across 57 stores in South Florida and Birmingam, Alabama. It will move quickly to expand the service, making it available at nearly half its 1,834 stores by the end of the first quarter (February 12), and the majority of its stores in time for the 2018 holiday season.
“Our teams moved at lightning speed to get Target up and running on Shipt’s platform in less than eight weeks,” said John Mulligan, COO, Target. “And we’re not stopping there—we’ll keep expanding….making Target the first retailer to be able to offer same-day delivery in all major markets across the country.”
Shipt is a membership-based service, with an annual fee of $99. (To celebrate the addition of Target to the Shipt marketplace, new Shipt members who sign up prior to expansion will receive an annual membership for $49.)
Members use Shipt’s online marketplace to browse participating local retailers’ aisles online and purchase from a full selection of grocery and household items. Shipt’s army of shoppers then take the orders, visit the stores to buy the products and deliver them to the user on the same day, usually within just a few hours.
Target will kick-off same-day delivery with an assortment of groceries, essentials, home, electronics and other. By the end of 2019, same-day delivery will include all major product categories at Target, according to Shipt.
Target’s acquisition of Shipt was one of the largest in the retailer’s history. It came as Walmart and Amazon were expanding their own same-day delivery offerings.
“This acquisition will mark an important milestone in an ambitious strategy we laid out in early 2017, which included strengthening Target’s supply chain and digital capabilities to make shopping at Target easier, more reliable and more convenient for our guests,” Mulligan stated in a blog on the retailer’s website back in December. “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.”
Is Walmart pursuing the ‘Tinder’ of grocery shopping?
Walmart is pursuing a project that could give the term “swipe right” new meaning.
The discount giant filed a patent for an online grocery shopping service that functions like the dating app Tinder. Called ‘The Fresh Online Experience (FOE) system,’ the solution will allow customers to view the exact item that in-store associates are picking to fulfill their online grocery order.
The item will be scanned using three-dimensional scanning. As the associate packs the order, they scan images of the items. Upon receiving a notification of the merchandise, shoppers can approve or reject the fresh item before it is packed into the order, according to the patent filing.
Approved merchandise is added to the order. However, if an item is rejected, in-store associates would swap that piece of produce out for another selection, and send the customer a photo of the new item for their approval, according to Business Insider.
According to the patent, there would be a cap on how many times customers can reject a specific item. When that limit is reached, customers will be able to make a selection from all the images that were sent to them.
The technology can be used via a mobile app or a web browser, the patent said.
Walmart originally filed for the patent on December 28, 2017, according to the filing.