Target is doubling down on same-day shipping as Walmart and Amazon spar over one-day delivery (TGT)

target store shopper

Target is going all in on same-day delivery.

The company is now offering same-day delivery through its own
website, Target.com. This isn’t Target’s first foray into the
same-day fray; the retailer acquired same-day delivery service
Shipt for $550 million in 2017. In January, Target expanded its
Shipt service to include all major
product categories
.

As part of its latest push, Target shoppers will be able to
order 65,000 items for same-day delivery from Target.com. In a
presentation provided to Business Insider, Target said that one out
of five of its same-day orders were placed by customers who’d never
put in a digital Target order before. The retailer is already
reporting repeat rates of nearly 80% for the service in the first
quarter.

Target said in a statement that certain products could be
delivered “in as soon as an hour.” Same-day delivery will be
accessible in 47 states and involve 1,500 of Target’s stores. The
service won’t immediately be added to Target’s app, but it will be
added some time before the 2019 holiday season.

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Target will continue to use Shipt to fulfill same-day orders,
but shoppers won’t necessarily have to fork over an annual
membership fee — $49 a year through Target — for the
service.

According to a release from Target, customers can either pay a
delivery fee of $9.99 or test Shipt out for a free four-week trial.
Shoppers will now also be able to put their Target REDcards to use,
meaning they could snag rewards and get 5% off their orders.

Target’s announcement comes about as retail rivals like Walmart
and Amazon spar over
next-day delivery
. The Minneapolis-based retailer is instead
focusing on its stable of pick-up and delivery options, including
free order pick-up and drive-up services and free two-day shipping
and restocking for customers with a REDcard.

“With same-day delivery now available directly within the
Target.com experience, we’ve made it even easier for our guests to
shop at Target — while still getting the great value, curated
product assortment and helpful guest service they’ve come to
expect,” Target’s digital SVP Dawn Block said in a statement.

Are you a Target employee with a story to share? Contact this
reporter at acain@businessinsider.com.

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Target is doubling down on same-day shipping as Walmart and Amazon spar over one-day delivery (TGT)