On-demand delivery specialist Shipt is branching out from groceries and daily essentials into a new market vertical — office supplies — through a partnership with Office Depot Inc.
Birmingham, Ala.-based Shipt, an independently operated subsidiary of Target Corp., said Tuesday that same-day delivery service from Office Depot and OfficeMax stores is now available in more than 200 markets, serving over 60 million households.
To use the service, Shipt members select Office Depot OfficeMax in the Shipt mobile app or on Shipt.com to add products to their virtual cart. Items include office/business supplies, technology products, and cleaning/breakroom products, among other offerings. Members can find out if delivery is available in their area by visiting shipt.com/officedepot.
“Our vision at Shipt is to deliver the products consumers need so that they can spend their time doing what matters most,” Shipt CEO Kelly Caruso said in a statement. “With Office Depot, we’re now able to serve more people in more ways, from the local business owner to the schoolteacher to the work-from-home mom or dad. We’re in the midst of an exciting evolution to a multivertical, multiretailer delivery service and are thrilled to have Office Depot as part of the Shipt family.”
Shipt said it aims to add new multivertical retail partners to its online marketplace throughout the year. Boca Raton, Fla.-based Office Deport has approximately 1,300 stores in the United States and Canada.
"Office Depot is committed to providing businesses with a quick and convenient shopping experience, so that they can continue to pursue their passion and grow their business," stated John Gannfors, executive vice president and chief merchandising and supply chain officer at Office Depot. "We're excited to offer same-day delivery through Shipt's marketplace so that more businesses can get what they need, when they need it, right to their door."
Acquired by Target in December 2017 for $550 million, Shipt now has retail partners spanning the grocery, alcohol, kitchen goods and household staples and business products segments. The service also delivers fresh foods, health and wellness products, and pet supplies.
Currently, Shipt reaches 70% of U.S. households in more than 5,000 cities. An annual membership costs $99, but consumers who sign up can get a free two-week trial and an annual membership for $49.
Target has increasingly integrated Shipt into its e-commerce operations. In June, the Minneapolis-based discount store chain made same-day delivery from Shipt available directly through the Target.com website. Previously, Target online customers wanting same-day delivery or store pickup had to set up a Shipt account and go to Shipt.com or use the Shipt app to place their orders and schedule fulfillment.
Last March, Target promoted Caruso, senior vice president for hardlines, to CEO of Shipt, succeeding the delivery company’s founder, Bill Smith. Also in 2019, Target expanded the product assortment available through Shipt to include all of its major categories.
Shipt rival Instacart also has delved into the home and office supplies space. Last April, San Francisco-based Instacart unveiled a pilot with Staples Canada at stores in the greater Toronto area.