Target makes the latest move in delivery wars with Walmart and Amazon
announced Thursday that shoppers in 47 states across the country will now be able to get items from online orders delivered same day by paying a flat fee of $9.99 per order. It's leveraging Shipt, a membership-based, same-day delivery platformUp until now, Target shoppers have been able to get orders delivered on the same day by being a Shipt member, which costs $99 per year.
Now, with Target's same-day delivery expansion, 65,000 items on Target.com will have the option to be delivered in as quickly as an hour, the company said. Shoppers will be able to use their Target credit cards to pay, which gives them a 5% discount. And it said this same-day delivery option should be incorporated into the Target mobile app before the holidays. It's currently live on desktop and mobile web browsers.
During the first quarter of this year, Target said that Shipt, curbside pickup and in-store pickup altogether drove more than half of its 42% e-commerce sales growth, and 25% of its same-store sales growth.The financial benefit of all this for Target is that when customers pick items up in stores, it is 90% cheaper for the retailer than when it has to ship something from a warehouse, the company said.
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