Target to acquire 100% of Shipt for $550mn
The American retailer, Target Corp., has announced that it will be acquiring the online same-day delivery platform, Shipt, Inc.
The acquisition will cost Target $550mn in an all-cash transaction, leaving Shipt as a wholly owned subsidiary.
The delivery service platform will for now continue to run independently, with the aim of delivering Target’s products from 50% of stores by early 2018.
Shipt’s network manages more than 20,000 personal shoppers, supply from various retailers.
Following the acquisition, Shipt will pursue its expansion with different partners, and will keep all employees in its Birmingham and San Francisco offices.
Bill Smith will continue to run the company, reporting to John Mulligan, Target’s Executive VP and Chief Operating Officer.
“We laid out an ambitious strategic agenda in early 2017, which included a focus on giving our guests a number of convenient ways to shop with Target, whether it’s ordering online and picking up in one of our stores, driving up to pick up an order, or taking advantage of services like our new Restock program,” stated Mr Mulligan.
“With Shipt’s network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country.”
“By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery, and Shipt’s service-oriented approach aligns well with Target's commitment to delivering an exceptional shopping experience for our guests.”
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