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Target Set to Offer Same-Day Delivery in Central California

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Target Corporation (TGT - Free Report) is making constant efforts to enhance customers’ shopping experience. In sync with this, the company has announced plans to launch same-day delivery of its more than 55,000 groceries, electronics, toys and other assortments via Shipt in Central California. This option will be available from Oct 4, 2018, in areas of Modesto, Sacramento and Stockton, and from Oct 11 in Bakersfield, Fresno, Merced and Visalia-Porterville, CA. Earlier, the company launched same-day delivery services in the areas of East Bay, North Bay, Peninsula, San Francisco and San Jose, Salinas, Santa Cruz, San Luis Obispo, and Santa Maria.

The launch of this service will help roughly 2 million household in these seven markets to get products delivered within an hour. Further, the Shipt platform will allow its members to easily search as well as shop in-store products online, following the commencement of the service. Additionally, the platform allows members to note preferences, select a one-hour delivery window and make payments for the purchases done.

Markedly, new members who sign up on Shipt before Sep 20 will be able to avail a yearly membership for $49 (usually $99). The annual membership will have free, unlimited delivery on orders above $35. We also note that there aren’t any additional membership fees for the service, unlike its leading rival, Amazon.com, Inc. (AMZN - Free Report) that requires Prime membership to avail this facility. In this face-off, other leading players in the retail space like Walmart Inc. (WMT - Free Report) and The Kroger Co. (KR - Free Report) have also been making investments in the same direction.

Coming back to Target, the company also acquired a transportation technology company — Grand Junction — to expand its supply chain and improve delivery capabilities. Grand Junction provides a platform that allows retailers, distributors and third-party logistics providers to manage local deliveries through a network of more than 700 carriers. Drive Up, an app-based service, is another initiative by Target to expedite the shopping process. The service allows customers to place orders using the Target app and have them delivered to their cars.

Target is deploying resources to enhance omni-channel capacities, coming up with new brands, remodeling or refurbishing stores, and expanding same-day delivery options. The company has undertaken rationalization of supply chain with same-day delivery of in-store purchases for a flat fee along with technology and process improvements.

These initiatives have aided this Zacks Rank #2 (Buy) stock to increase 14.9% in the past three months, while the industry grew 11.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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