(Author : Obi Anyanwu)
Target announced on Wednesday that it has agreed to acquire Shipt, Inc., the online same-day delivery platform for $550 million in cash. The transaction is expected to close before the end of 2017.
The Minneapolis-based retailer will offer the same-day delivery service to half of its stores by early 2018 and to most of its stores in major markets before the 2018 holiday season. The same-day delivery service will be offered for groceries, essentials, home, electronics, and other products at launch and will include all major product categories by the end of 2019.
“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 Target EVP and COO John Mulligan.
“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. ”
Founded in 2014, Shipt offers personalized grocery delivery across the US, utilizing a network of over 20,000 personal shoppers in over 72 markets. The Birmingham, AL-based company connects members to shoppers through its app. With the acquisition, Shipt will be a wholly owned subsidiary of Target, but will continue to operate independently. All Shipt employees will continue to operate out of the company’s two offices in Birmingham and San Francisco and CEO Bill Smith will remain in his role, but will now report to John Mulligan.
The same-day delivery concept has quietly grown over the years with companies like Net-a-Porter offering the service in New York City and Amazon offering the service under special circumstances. Macy’s this fall expanded its same-day delivery service to 15 additional markets in Arizona, California, Colorado, Florida, Michigan, Minnesota, Missouri, North Carolina, Ohio, Pennsylvania, and Texas.
Source : us.fashionnetwork.com