Target will begin offering same-day delivery to customers in three metro areas—Boston, Miami and Minneapolis—starting Feb. 1, according to reports. The move comes following the retailer’s December acquisition of Shipt for $550 million.
Earlier reports stated that the same-day delivery would be in several cities in Florida, including Daytona Beach, Fort Myers, Gainesville, Gulf Shores, Jacksonville, Naples, Sarasota, Orlando, Space Coast, St. Augustine, Tallahassee and Treasure Coast.
Shipt, based in Birmingham, Ala., leverages a proprietary technology platform and a network of independent shoppers who pick from stores and deliver products to customers. Shipt currently has 20,000 shoppers serving 72 markets around the country, picking from supermarket chains that include H-E-B, Harris Teeter, Meijer and others.
When Target bought Shipt in December, it said it would roll out same-day delivery in by early 2018. Customers must place their orders before 1:30 p.m., for same-day delivery through Shipt, and there is a charge of $10.
The move comes following the news that online retail is picking up speed at an even faster rate than previously thought. According to a study released by the Food Marketing Institute and Nielsen, 70% of consumers will shop for groceries online by 2024. The same report last year predicted a majority of Americans would be shopping online within eight to 10 years.
The report estimates that consumers could spend $100 billion a year on online grocery by 2024. That is the equivalent to every U.S. household spending $850 online for food and beverage annually.