Target announced Monday (Aug. 14) that it has inked a deal to acquire Grand Junction, a transportation technology company in an effort to expand and improve its delivery abilities.
In a press release Target said the acquisition is also aimed at speeding up its investments and ongoing efforts to overhaul the supply chain at the retailer.
“Grand Junction»s technology and algorithms will help Target deliver to guests faster and more efficiently,” said Arthur Valdez, executive vice president and chief supply chain and logistics officer at Target, in a press release. “This acquisition is part of Target’s ongoing efforts to strengthen Target’s supply chain to provide greater speed, reliability and convenience for guests.” Terms of the deal were not disclosed.
San Francisco-based Grand Junction offers a software platform that’s used by retailers, distributors and third-party logistics providers to manage local deliveries through a network of more than 700 carriers, Target said in the press release. Currently, Grand Junction is working with Target on its same-day delivery pilot at the Target store in New York’s Tribeca neighborhood. Upon the close of the deal, Grand Junction’s employees will become Target team members. “Target is seizing a tremendous opportunity to leverage local delivery as a retail differentiator,” said Rob Howard, Grand Junction’s founder and CEO, who will become a vice president of technology at Target. “We’re thrilled about helping to pursue this opportunity, and to join Target at this unprecedented time in retail.”
The move on the part of Target to make an acquisition to improve its delivery prowess comes at a time when all sorts of retailers are trying to figure out a way to survive and stand out amid Amazon’s two-day delivery service for Prime Members. Amazon has been pouring tons of money into logistics and delivery, even looking at drones to deliver packages near instantaneously.