The competition heats up for Grocery Delivery
Today’s post is by Gayl Southard, Administrative Consultant, SafeSourcing.
Target is introducing same-day delivery. Birmingham, Alabama and South Florida rolled out same-day service on February 1st, quickly followed Alabama, Georgia, North Carolina, South Carolina, and Tennessee. Target plans to have this service in all stores by the end of 2018. “Same-day delivery was at the top of our list when we were thinking about ways to make shopping at Target even easier,” said John Mulligan, Target’s executive vice president and chief operating officer said in a statement.
Shipt, an on-line grocery marketplace retail giant, was purchased in December for $550 million. By using the Shipt app, Target customers can purchase over 50,000 items from Target. Amazon currently dominates 38 percent of all online shopping. Amazon customers are used to speedy service, convenience, and low prices. Target wants to capitalize on this market.
Amazon does offer its own grocery delivery service called Amazon Fresh; however, they scaled back the number of locations it’s offering it once they purchased Whole Foods. It seems people are still willing to go to the grocery store and buy in person. Target is anxious to capture and keep this delivery market. Target will also deliver grocery essentials, home, electronics and other products. By the end of 2019, it will also include all Target’s major product categories.
Enrolling in the Shipt program costs $99 per year. That’s cheaper than AmazonFresh, which costs a $179.88 per year, on top of a $99 Prime membership. The move comes as analysts speculate that Amazon might want to buy Target.1
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1 Ben Popken, Business, 2/1/2018