Target Expands Delivery Capabilities With More to Come

MINNEAPOLIS — Target Corp. has laid out plans to acquire San Francisco-based tech company Grand Junction, as it expands its delivery service programs to new markets.

Minneapolis-based Target is currently piloting a next-day essentials delivery service program, dubbed Target ReStock, in its hometown. The retailer is also testing a same-day delivery service in New York’s Tribeca neighborhood.

Target wants to expand same-day delivery to more New York-area stores by this fall and to other major cities sometime in 2018, while also entering new markets for next-day delivery. The acquisition of Grand Junction will help make all of this possible.

Grand Junction offers a software platform that can manage local transportation through a network of more than 700 carriers. Ideal for retailers, distributors and third-party logistics providers, the company’s software also provides visibility of deliveries and tracks carrier performance.

“Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently,” said Arthur Valdez, executive vice president and chief supply chain and logistics officer at Target. “This acquisition is part of Target’s ongoing efforts to strengthen Target’s supply chain to provide greater speed, reliability and convenience for guests.”

Grand Junction CEO Rob Howard will become Target’s vice president of technology once the acquisition closes. The tech company’s employees will also become members of the Target team, per the deal.

Following the announcement of its acquisition of Grand Junction, Target confirmed that it would be expanding its Target ReStock next-day delivery program to the Dallas-Fort Worth and Denver markets. Customers living in those regions will soon have access to more than 15,000 of Target’s popular essentials delivered to their doorstep the day after placing an order by 2 p.m. for $4.99.

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