Near the end of 2017, Target announced it would acquire Shipt, an online grocery marketplace that hosts an impressive delivery system. This move didn't come as a shock to anyone, especially as the delivery grocery games heat up across the board. Sam's Club announced it would offer free shipping for Plus members, Amazon is rolling out free 2-hour delivery from Whole Foods Markets in select cities, and Walmart is creating some heart-tugging commercials featuring baby pacifiers highlighting their delivery service. So of course, it was only a matter until Target joined in, too.
First, Target rolled out same-day delivery in Florida to test. From the looks of it, the test went swimmingly because Target announced it roll out same-day delivery to 12 Southwest cities. Starting February 15, the following Target stores in the metropolitan areas will offer the delivery experience, per the press release.
Arizona: Phoenix metro area
Oklahoma: Oklahoma City, Tulsa
Texas: Austin, College Station, Corpus Christi, Dallas-Forth Worth metroplex, greater Houston, Killeen, Temple, and greater San Antonio
The press release states that over "8.5 million households across the Southwest" will have access to Target products delivered by Shipt in one hour or less. Target and Shipt both gave statements on the delivery expansion, with Bill Smith, the founder and CEO of Shipt stated,
"The addition of Target stores to Shipt's online marketplace across the Southwest allows us to deliver on our promise to offer quality products at great prices by making Target's wide assortment available to our dedicated members," said Bill Smith, founder and CEO of Shipt. "We know Shipt members in the Southwest will enjoy the convenience of having their Target run delivered within an hour by our growing community of Shipt shoppers who are known for offering personalized, highly-tailored service."
Ship offers annual memberships for $99, and those who signed up for the membership program prior to February 15 were greeted with a new annual membership deal at $49. Target's executive vice president and chief operating officer John Mulligan stated,
"Same-day delivery was at the top of our list when we were thinking about ways to make shopping at Target even easier. Shipt's personalized, customer-focused approach fits perfectly with our commitment to deliver a convenient, exceptional experience and we're excited to begin offering same-day service in the Southwest."
For those who grocery shop at Target, this new delivery service will rival that of Instacart in these major markets. Grocery delivery is the name of the game these days, and fast home delivery is considered premium. By guaranteeing the same-day delivery service Shipt, Target is making delivery options more accessible for its customers. Shipt, in turn, is working to include all major product categories into its delivery model.
Also, how easy will planning the holiday season be with Target's new service? The retail giant is keeping up with the times, but will it challenge the Costco delivery service or Amazon's coveted Prime guarantee?
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