Target is launching a same-day delivery service sooner than expected. CNBC reports in the wake of its $550 million acquisition of Shipt, Target will be launching same-day shipping technologies in 57 stores across Alabama and South Florida, starting Feb. 1. Later in February, Target’s website announced Shipt's service will expand to areas of Georgia, North Carolina, South Carolina and Tennessee.
“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. “We’ll keep expanding." Target also stated it plans to offer Shipt’s services at nearly half of its storefronts by the end of March and in the majority of storefronts by 2018.
Total Retail's Take: At this rate, Target could be the first big-box retailer to offer same-day delivery in all major markets. Target’s acquisition of Shipt and its quick implementation of same-day delivery (at least in select market to start) helps it become a real contender in the fight against Amazon.com. Shipt operates similarly to Amazon Prime, with an annual membership fee of $99. In an effort to grow its user base, Shipt is offering a discount on membership prior to a more widespread rollout at Target stores.