Target expands same-day shipping as delivery war heats up

Daniel Fowler
June 16, 2019

Shoppers will be able to pay a flat fee of $9.99 and have the option to get 65,000 items on Target.com delivered same day. The company previously offered one-day shipping on select items and free same-day delivery for those whose orders were $35 or more. The option will be incorporated into the Target app before peak season, according to CNBC. We'll have to watch and see if other physical retailers begin to use Shipt or similar services.

Target has rolled out same-day delivery available directly through Target.com, shopped by its Birmingham, Ala. -based grocery delivery company Shipt, which the retailer acquired in 2017.

Shipt would deliver Target orders to customers if they were also members, but now, any customer can take advantage of the service.

"There is no doubt that Target and Walmart are responding to every new delivery concept introduced by Amazon", said Richard George, Professor of Food Marketing at Saint Joseph's University in a RetailWire discussion. It's now live on desktop and mobile web browsers.

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Target already offers Drive Up and Order Pickup options for consumers going to stores. Sales at stores open at least a year were up 4.8% during the quarter. Customers can order online and pick up the purchases at any one of its stores.

Pictured: Customers leave a Target store on August 14, 2003 in Springfield, Virginia.

In testing same-day delivery with a $9.99 fee in nine markets ahead of Thursday's announcement, Target said basket sizes grew about 10% to 15% on Target.com, compared with when shoppers were having to go through Shipt's website to get same-day delivery. It is expanding its same-day delivery service. This means: Something like next-day delivery is a short-term burst of excitement, ... a short-term micro-economic war. The online shopping giant announced in April it was offering one-day shipping on a number of products and will continue to add millions of items. The launch of the faster delivery plan came just a few months after a study found that most Prime customers cited Amazon's free, fast shipping as the main drawing point of the service. And as more people do this, Target's fulfillment costs drop.

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