Grocery Targets

Not to be outdone by Amazon’s acquisition of Whole Foods, Target has announced plans to acquire grocery delivery platform Shipt for $550M in cash, according to a report from Recode.

Shipt clients pay $99 a year for unlimited deliveries from a selection of partners that include Harris Teeter, Meijer, and Texas grocery giant H-E-B, and operates in 72 cities currently, with plans to be in 140 markets by the end of next year.

Target plans to join the Shipt online marketplace, while Shipt intends to keep serving its other retail partners. Eventually, Target will offer the Shipt same-day delivery service on Target.com and the Target app.
– via Recode

The deal also marks the latest move by Target to modernize its logistics and fulfillment efforts. The company recently launched its own curbside pickup tests at about 50 stores, after initially working with a startup as a partner in previous years. It is also expanding how many of its stores serve as mini-fulfillment centers to source inventory for online orders. Starting early next year, Target customers who want to order their groceries through the Shipt service will have to pay for a Shipt membership and order through the startup’s website or app. By summer, about half of Target’s 1,800 stores will have joined the Shipt platform; by next holiday season, just all Target stores should be on board.
– via Recode