Target's strategy for Shipt takes shape
Target is making a move to distance its Shipt division from certain retailers.
According to the Minneapolis Star-Tribune, Target has ended Shipt deliveries from Walmart stores. A Target spokeswoman confirmed the development to the Star-Tribune, but didn't comment further on it.
Target executives told the Star-Tribune that Target wants to keep other retailers in the Shipt marketplace to make the $99-a-year service attractive to consumers and more cost effective to run. Some of the other retailers Shipt still delivers from include Kroger, Meijer and Publix.
Target announced its plans to acquire the Shipt platform in December for $550 million. The deal, one of Target's largest, comes as all retailers look to broaden their distribution capabilities.
In January Target announced that it would begin same-day delivery of an in-store assortment of groceries, essentials, home, electronics and other products across Florida and other states.
“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, executive vice president and chief operating officer, Target. “Shipt’s personalized, customer-focused approach fits perfectly with our commitment to deliver a convenient, exceptional experience and we’re excited to begin offering same day service.”