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Target, Shipt Take Same-Day Delivery Service in California

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Target Corporation (TGT - Free Report) has been aggressively adopting strategies to enhance the shopping experience. In this regard, this general merchandise retailer via Shipt has announced plans to launch same-day delivery of its more than 55,000 groceries, electronics, toys and other assortments in California. This option will be available from Sep 20, 2018 in areas of East Bay, North Bay, Peninsula, San Francisco and San Jose.

With the launch of the service, millions of consumers in the region can now get products delivered within an hour. Also, 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, it 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 there isn’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.

Since its launch in 2014, Shipt has expanded to more than 200 markets across the United States. The company expects to continue with its expansion in 2018 by adding Target outlets and other retailer partners to its online marketplace. Target acquired the internet-based grocery delivery service, Shipt, last year to capitalize on opportunities in the evolving grocery space. Moreover, it rolled out Target Restock program that allows customers to restock their shipping box with essential items online and get them delivered at door steps by the next business day for a nominal charge.

Target 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.

This company 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 upsides have aided this Zacks Rank #2 (Buy) stock to surge 55.2% in a year, while the industry rallied 48.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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