Retail

Target CEO Touts Personal Shopper Delivery Service

After acquiring Shipt in December, Target’s Chairman and CEO is promising customers will reap the rewards of the service this year.

“Now with Shipt, if you order, in a couple of hours, I’ll put it right on your kitchen table,” Chairman and CEO Brian Cornell told CNBC.

One month after the acquisition, which saw the retailer buy Shipt for around $550 million, Target started offering the Shipt service — first from its stores in the Tampa and South Florida areas on February 1 before it expands to 12 other markets in the state. As a result, Shipt plans to hire more than 3,000 shoppers.

“Florida’s growing community of Shipt members continues to be loyal and enthusiastic about the service, and we look forward to expanding throughout the state with our newest retail partner, Target,” Bill Smith, founder and CEO of Shipt, said.

Target plans to make same-day delivery available to most of its stores before the 2018 holiday season. Initially, it will only apply to groceries, essentials, home goods, electronics and other products — but the company will expand the list of items included in the service over time. By the end of 2019, Target plans to offer same-day delivery for “all major product categories.”

In addition, Target is expanding services to make it easier for shoppers to make online purchases that can then be picked up at their nearest store.

“In many markets, you’ll be able to drive right into our parking lot [and] our team member will put that order in your truck,” said Cornell.

Shipt is just one of the retailer’s plans for 2018. While Target revamped more than 110 of its stores last year, Cornell says they will remodel 300 in 2018, as well as boost the company’s digital presence.

There are also plans to open stores in urban areas, such as New York City, Boston and Chicago, as well as on college campuses. But they won’t all be full-scale Target stores. Instead, some will feature smaller-format locations to allow shoppers to quickly grab items while on the go.

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