Target Acquires Transportation Technology Company Grand Junction
Target Corp. announced today that it has agreed to acquire Grand Junction, a transportation technology company, to improve and expand its delivery capabilities. The acquisition will also accelerate Target’s investments and ongoing efforts to transform its supply chain.
“Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently,” said Arthur Valdez, executive vice president, chief supply chain and logistics officer at Target in a press release. Grand Junction’s software platform is used by retailers, distributors and third-party logistics providers to manage local deliveries through a network of more than 700 carriers. Terms of the deal, Target’s first acquisition since 2013, weren’t disclosed. As part of the agreement, Grand Junction’s 13 employees will relocate a few blocks to Target’s downtown San Francisco office and set about helping the retailer bring delivery to more areas. Grand Junction currently handles the same-day delivery service for Target’s store in Manhattan’s Tribeca neighborhood.
Total Retail’s Take: The last mile is becoming the Holy Grail for retailers, which are struggling to provide the fastest and most efficient delivery experiences for their customers amid increasing competition from Amazon.com. While currently Grand Junction only handles the same-day service for Target’s Tribeca location — where Target customers can have in-store purchases delivered, for a small fee, anywhere in Manhattan and to parts of Brooklyn and Queens — the same-day service will expand to other New York City stores by October and to additional U.S. cities early next year. As such, Grand Junction’s services will be a key part of Target’s infrastructure going forward as the retailer looks to optimize e-commerce sales.