Target Acquires Company To Help Them Make Same-Day Deliveries

Kelly Lindgren explains the Target Cartwheel mobile site in this Nov. 22 2015 file
Kelly Lindgren explains the Target Cartwheel mobile site in this Nov. 22 2015 file

16 August, 2017

In a report from Bloomberg, Target has recently agreed to acquire a software company that manages local and same-day deliveries called Grand Junction. The merger will also help Target accelerate its mission to improve its supply chain. "Beyond that, we'll leverage Grand Junction's platform - which is already used by hundreds of carriers - to become even faster and more efficient in how we get products to our guests".

Target said on Monday that it plans to bring the same-day delivery pilot to a few more NY stores this fall.

It said the company will become a part of the company's technology unit and said Grand Junction will stop working with other retailers when those contracts end. Arthur Valdez, Target's executive VP, chief supply chain and logistics officer, and Rob Howard, CEO of Grand Junction, discussed the acquisition in the following Q&A, posted on the retailer's website. Whether guests shop online or in a store, they expect to get products quickly and on their terms.

"Target is transforming its supply chain and logistics capabilities so we can serve guests with more speed and convenience, while creating new offerings and services". According to Valdez, Target will expand its same-day delivery service to other New York City stores by October, before rolling out to other USA cities next year.

Valdez told the Minneapolis Star Ledger that a new Target distribution center in Perth Amboy, NJ will help it service the NY area using a faster, real-time replenishment model.

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Instacart is still doing Target deliveries in Chicago, Minneapolis and San Francisco as part of the test program.

Once the purchase has been completed, Target plans to fold the company into its technology unit.

"Retail success has become as much about technology as it is about merchandising", Portell told FierceRetail.

Target has adopted several measures aimed at accelerating its sales growth, including a focus on digital business, small-format store openings, supply-chain reinvention, and the remodeling of large stores.

The desire to have quick deliveries continues to grow.

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