Target's Same-Day Delivery Service Launches in Two Markets

MINNEAPOLIS — Target’s much-anticipated same-day delivery of groceries and other items is hitting select markets this month.

The Minneapolis-based big-box retailer began offering the same-day delivery service at 57 stores in the Birmingham, Ala., and South Florida markets on Feb. 1.

In order to bring this service to its customers, Target purchased Shipt — the internet-based grocery delivery service out of Birmingham — for $550 million. By purchasing Shipt, Target gained access to the company’s proprietary technology platform and its 20,000-plus-strong community of personal shoppers. The retailer then had to upload and accurately list hundreds of thousands of its products to Shipt’s app to ensure a successful initial rollout of the same-day delivery service to its customers.

For now, Target’s same-day delivery service will be limited to groceries, essentials, home, electronics and other assorted products. However, the selection — in addition to the markets in which the service is available — will be growing rapidly.

“Our teams moved at lightning speed to get Target up and running on Shipt’s platform in less than eight weeks,” said John Mulligan, Target's chief operating officer. “And we’re not stopping there — we’ll keep expanding, with plans to offer Shipt’s services at nearly half our stores by the end of first quarter, and the majority of stores by the 2018 holiday season, making Target the first retailer to be able to offer same-day delivery in all major markets across the country.”

Click here to see read more from Convenience Store News sister publication Progressive Grocer.