OPERATIONS

Target to step up same-day deliveries in 2019

BY Deena M. Amato-McCoy

Target has some big plans for its Shipt business next year.

Starting in 2019, the discounter will expand the assortment and operating markets that are supported by its same-day grocery delivery service Shipt. Currently, the service, which is available in more than 200 markets across 46 states, enables Target to deliver groceries and essentials, home, electronics, gifts, and decorations, among other categories, within an hour.

Target acquired Shipt for $550 million in December 2017 — one of the largest acquisitions in the company’s history. The partnership has enabled the discounter to achieve its goal of bringing same-day delivery services to shoppers at approximately half of Target’s stores by early 2018, and in most stores in all major markets before the 2018 holiday season. (Shipt only serviced 70 markets when it teamed up with Target.)

“We’re always looking for ways to make shopping Target’s selection even easier,” John Mulligan, Target’s chief operating officer, said in Target’s blog, “A Bullseye View.” “With Shipt, same-day delivery became a reality for our guests across the country, making Target the first retailer to offer the service coast to coast.”

While the service offers same-day delivery on items across the store, Shipt’s most popular category is grocery. The top 25 most frequently purchased grocery items included eggs, milk, bananas, strawberries, avocados, shredded cheese, butter, and limes, among other products, according to Target.

Shipt’s tie-up with Target has also help the company hit its own milestones. Shipt memberships tripled year-over-year, and the company has hired more than 375 new employees across its Birmingham, Alabama and San Francisco offices. Additionally, Shipt plans to expand their headquarters in Birmingham, a plan that will add “hundreds” of new jobs to the area, according to Target’s blog.

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