Through its Shipt subsidiary, Target Corp. is expanding same-day grocery delivery to Colorado.
Target said Thursday that its stores in the Boulder, Colorado Springs, Denver and Fort Collins metropolitan areas will offer delivery via Shipt for more than 55,000 grocery items, essentials, home, electronics, toys and other products starting on May 3.
The move will give approximately 4 million households across Colorado access to Target products through the Shipt online marketplace and app, with delivery in as quick as an hour.
"Shipt's personalized, customer-focused approach fits perfectly with our commitment to deliver a convenient, exceptional experience, and we're excited to begin offering same-day service across Colorado,” said John Mulligan, Target executive vice president and chief operating officer, in a statement.
More than 800 Shipt shoppers will be added in Colorado to help fill orders, Target said. Consumers are being offered a Shipt annual membership for $49, compared with the $99 regular fee, if they sign up before the service is launched. The annual membership provides free, unlimited delivery on orders over $35.
"Shipt is bringing same-day delivery to a number of bustling neighborhoods across Colorado, simplifying how residents shop for their lifestyle essentials," said Bill Smith, founder and chief executive officer of Shipt.
Target has rolled out the Shipt same-day service to its stores rapidly since acquiring the Birmingham, Ala.-based company in December. The retailer said most of its stores will offer the service by this holiday season, and by the end of 2018 it will be in nearly 180 markets, reaching 80 million households. Same-day delivery is expected to be available for all major product categories at Target by the end of next year.
The swift expansion reflects brick-and-mortar food retailers’ ongoing concern about Amazon, which shook up the grocery sector last year with its acquisition of Whole Foods Market and the sharp growth of its Amazon Prime program, whose membership now tops 100 million.
“Major names in U.S. grocery are piling into e-commerce. These companies are rolling out delivery points, partnering with rapid-delivery firms and acquiring fulfillment providers,” New York-based CoreSight Research said in its new “U.S. Online Grocery Consumer Survey” report.
“Walmart and Kroger have raced to establish hundreds of new grocery collection points, and many regional grocers have joined them by trialing or rolling out grocery pickup services,” the study said. “In recent months, Target acquired delivery provider Shipt, and Walmart bought logistics startup Parcel. In addition, a number of grocery retailers signed agreements in 2017 to offer delivery via Instacart. These include Kroger, Publix, Albertsons, Food Lion and Stop & Shop (both owned by Ahold Delhaize), as well as regional chains Superior Grocers, Stew Leonard’s and Best Market.”