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Target acquires delivery firm Grand Junction
16 August 2017, 03:29 | Ruby West
Credit Bloomberg News
Grand Junction's 13 employees will become Target workers after the deal closes, Target said. Amazon and Walmart.com shoppers can choose from a variety of delivery options, including, in some cases, speedy same-day delivery, and Target wants their customers to have these options as well.
Target is expanding their same-day delivery service by purchasing Grand Junction, a startup that links retailers and other distributors to a network of more than 700 carriers across North America. Customers include Office Depot and Target, which has been piloting a delivery project from its store in New York City's Tribeca neighborhood. "Grand Junction's platform, along with our 1,800 stores, allows for speed to the guest that can be very competitive".
"Whether guests shop online or in a store, they expect to get products quickly and on their terms", said Valdez, who was hired away from Amazon in May.
Though TGT didn't talk about business synergies from the Grand Junction acquisition, it's clear that Grand Junction's technology will likely help Target manage its deliveries more efficiently and result in lower fulfillment costs.
The retailer said the acquisition will improve and expand its delivery capabilities, and accelerate its investments and ongoing efforts to transform its supply chain. "It will also boost our ability to offer new services-like same-day delivery, and even assembly and installation-to our guests", Valdez said in a Q&A on Target's corporate blog, A Bullseye View. They'd like to expand same-day delivery to more NY stores later this year, and to stores in other major cities next year.
Instacart is still doing Target deliveries in Chicago, Minneapolis and San Francisco as part of the test program. Its founder and chief executive, Rob Howard, is to become Target's vice president of technology.
"Retail success has become as much about technology as it is about merchandising", Portell told FierceRetail.
"Maintaining the risk tolerance of a startup will be an important part of Target's growth trajectory", he said. That challenge isn't unique to Target.
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