The same-day grocery-delivery battle heats up.
Target Corp. announced Thursday, May 31, it will expand its same-day delivery service, Shipt, into the Midwest. Customers in Kentucky, Illinois, Indiana, Wisconsin, Missouri, Michigan and Ohio metro areas can start placing grocery orders starting June 14.
The Minneapolis-based retailer acquired Shipt for $550 million last December. By year’s end, Target expects to have same-day deliveries in 180 markets.
“Target’s rollout of Shipt to more stores through 2018 is all about the table stakes of retail today,” said David Shick, director of research for research equity firm Consumer Edge Research, about the move by Target. “Customers always want choice. Now choice is still about items that appeal to a consumer but with a variety of ways to browse, buy and get those items to the consumer. This is a powerful consumer trend and retailers must invest around that or risk losing relevance.”
Target, which has amped up its grocery offerings in the last year and lowered prices, is, like most grocers, going up against Walmart Inc. and Amazon.com Inc.
Amazon announced Tuesday, May 30, it would offer discounts for its grocery store chain, Whole Foods, in 12 more states. Both Amazon and Target are playing catch-up to Walmart, which is the largest grocer and already partnered with Uber, Deliv and Postmates in more than 100 metro areas.
For same-day deliveries, customers will have to purchase a Shipt membership.