Published: Sun, June 16, 2019
Markets | By Otis Pena

Target ups the ante in online delivery wars

Target ups the ante in online delivery wars

Walmart is on track to offer same-day delivery for groceries out of a network of 1,600 stores by the end of the year - double what it was in January. The giant retailer has announced that customers in 47 states will now be able to place orders on and have them delivered in as little as one hour. It's using Shipt, a membership-based, same-day delivery platform it acquired for $550 million in 2017, to do this.

Target's move marks the latest effort by the Minneapolis-based discounter to expand same-day options.

In the continuing game of one-upmanship involving retail's biggest players, Target has fired a shot of its own by offering same-day delivery for more than 65,000 products.

According to a release from Target, customers can either pay a delivery fee of $9.99 or test Shipt out for a free four-week trial. The eligible items are all located in a dedicated area on the chain's site. Shoppers will be able to use their Target credit cards to pay, which gives them a 5% discount.

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"With same-day delivery now available directly within the experience, we've made it even easier for our guests to shop at Target-while still getting the great value, curated product assortment and helpful guest service they've come to expect", Dawn Block, senior vice president, digital, said.

Online shopping has become the most popular way to get those random and regular items, eliminating the need to visit a store by condescending the shopping experience in a simple mobile app. Amazon set unique expectations when it coms to online shopping with its free two-day shipping, which will be reduced to one-day shipping by default in the future.

Target already offers Drive Up and Order Pickup options for consumers going to stores. In response to that question, Lewis said the service is responding to customer's need for speed delivery, and the availability of same-day delivery will play a key role in driving the company's sales.

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