Target is making major strides in the delivery wars (versus Amazon and Walmart), and the primary way they’re doing this is through Shipt, their same-day delivery service. Target is already more than halfway through rolling out this initiative — with Chicago being the first city that will test it out.
There are a number of reasons why this initiative by Target matters, one of which is that it’s only a matter of time before more local businesses begin to enter into partnerships with big corporations to deliver products to consumers’ houses/places of business. We’ve already seen this with the partnership between Amazon and local warehouses.
Shipt was purchased by Target in 2018 for $550 million, and it uses shoppers that will stay in communication with the customer as they’re picking up their item(s) for them. It’s something of a fusion of Uber and a delivery service.
In addition to Shipt, Target is also engaging with new brands called “last mile” which include Shipt, Drive Up, Target Restock and the fulfillment of online orders from within local stores.
According to a release by Target:
“’With Drive Up, we’re seeing it as popular among parents of small children for ‘fill-in trips’ to pick up items like diapers,’ a company spokesman told CNBC. He also said those shoppers opting to have their online orders fulfilled at and shipped from a local Target store are increasing their basket sizes by six times, on average.
By the end of this month, Target said it will offer same-day delivery via Shipt in more than 135 markets. By next year, all ‘major product categories at Target will come with the option to be shipped on the same day a purchase is made (some items are currently unavailable on the platform).
As of this week, more than 600 Target stores in 20 states offer Drive Up, while nearly 1,000 locations are set to offer the service by holiday season, according to the company.
‘The expectation is for the benefits [from the shipping and pickup options] to accelerate into next year as each of the programs mature and are rolled out more broadly.’
‘Target has accelerated its efforts over the past 12 months to leverage its vast store base [1,800+ locations] while providing customers with an array of convenient options to shop,’ Grom wrote. ‘In fact, management believes that by year-end, Target’s array of shopping options will put them on par, if not make them more convenient than Amazon.’”
Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the cosmetics industry. Build is a supplier of part and full time worker to Target who believes that people with disabilities deserve a chance.