Target ups ante in online delivery wars, integrates Shipt shopping

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Target announced today that U.S. customers - with some geographic exceptions - can now select same-day delivery for orders placed directly through its website that total more than $35 for a flat fee of $9.99, or for free if they're already a member of shopping app Shipt.

Retailer Target, the red-themed competitor to Walmart, has introduced a new same-day delivery option for many United States customers across the nation.

The retail giant incorporated Shipt, a delivery startup it purchased almost two years ago, on its website.

Target's move into same-day shipping is a smart one especially since its biggest competitors have also made advances in the space.

Fifty-three percent of American consumers said they were planning to place more orders online in 2019 with the intent of picking up their purchases at bricks-and-mortar stores, according to a survey by Internet Retailer of 1,100 people taken just after the 2018 holiday season.

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The move to integrate Shipt's shopping and delivery service with the Target website and mobile app allows the Minneapolis-based retailer to control the shopping experience and offer its own deals. At 25 stores in five markets, shoppers can pay a $7 flat delivery fee to have purchases bought at the store delivered to their homes.

Delivery is enabled by the Shipt same-day delivery platform, which Target acquired in 2017. Shoppers will be able to use their Target credit cards to pay, which gives them a 5% discount. Shoppers can also pick up an online order curbside at 1,400 stores.

Retail giant Amazon is a name everyone is familiar with and one whose business approach has already set some particular standards everyone has come to expect from product delivery businesses. In January, Target expanded its Shipt service to include all major product categories.

The announcement comes a month after Walmart rolled out its next-day delivery with a minimum order of $35 on its most popular items. And as more people do this, Target's fulfillment costs drop.

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