Target Corp. announced it will acquire Shipt Inc., an online same-day delivery platform — and that means getting your Target purchases delivered to your door even faster.
Target acquired Shipt for $550 million, and it will enable Target to offer same-day delivery services at approximately half of its stores by early 2018.
“The acquisition significantly accelerates Target’s digital fulfillment efforts, bringing same-day delivery services to guests at approximately half of Target stores by early 2018. The service will be offered from the majority of Target stores, and in all major markets, before the 2018 holiday season,” the company announced.
Target will initially offer same-day delivery of groceries, essentials, electronics and other products. By the end of 2019, same-day delivery will include all major products at Target.
“By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery, and Shipt’s service-oriented approach aligns well with Target’s commitment to delivering an exceptional shopping experience for our guests,” said John Mulligan, executive vice president and chief operating officer for Target.
Shipt is a rapidly growing membership-based grocery marketplace and same-day delivery platform. It is currently utilized by Meijer in the Southwest Ohio region. Through Shipt’s app, members are connected to local, reliable shoppers who help facilitate a quality delivery experience that is personalized, efficient and convenient.
Shipt will be a wholly owned Target subsidiary, and will continue to run its business independently.
The transaction is subject to customary closing conditions and is expected to close prior to the end of calendar year 2017. This all-cash acquisition will be immaterial to Target’s near-term financial results.
FIVE FAST BUSINESS READS
Thank you for reading the Springfield News-Sun and for supporting local journalism. Subscribers: log in for access to your daily ePaper and premium newsletters.
Thank you for supporting in-depth local journalism with your subscription to the Springfield News-Sun. Get more news when you want it with email newsletters just for subscribers. Sign up here.