U.S. retailer, Target may be on the precipice of some major changes as it looks to extend its services to customers interested in online shopping.
The announcement came on Wednesday when the company stated that it could soon be entering a partnership with the same-day delivery platform, Shipt.
Shipt is one of the country’s major delivery services and the deal Target speaks of could be worth almost $550 million, in cash. Shipt provides services to a number of high profile clients including Costco and Kroger.
Speaking of the move, Target’s Chief Operation Officer, John Mulligan stated, “With Shipt’s network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country”.
The news comes on the heels of Amazon’s purchase of Whole Foods in August. This, combined with the fact that Walmart purchased Jet.com in 2016, only fueled Target’s desire to join the home delivery community.
Target has been a little late on the upkeep since it has been focused on its internal growth. Unfortunately for Target, its absence from the game has resulted in ripples among investor groups, which believe that Target has become one of the weakest players on the market.
With the deal with Shipt, Target is hoping to change all of that. With Shipt’s help, Target is looking to offer same-day delivery for all of its products ranging from home furnishings and electronics to groceries.
Target has hopes that its services will be launched before Christmas 2018. The company has also admitted its ambition to extend the same-day delivery tag to “all major product categories” by the end of 2019.
Target’s announcement is likely to come as a shock to the company’s current partner, Instacart. Instacart has been Target’s go to delivery service and the company supplies groceries to select markets through the service.
Neither Instacart nor Target was available to comment on the future of their partnership.