Last year, Target acquired delivery service Shipt in a $550 million deal. With Shipt at the helm, Target began offering same-day delivery services in certain parts of the country. However, only around 55,000 of the items that Target stocks were eligible for the service, mostly groceries and various household essentials. As part of efforts to open an omnichannel business approach, Target is reportedly increasing that stock threshold.
While an official start date has not been specified, Target has announced that in the near future, all product categories, from clothes to kitchen appliances to whatever else, will be available for same-day shipping through Shipt. By opening up the delivery pipeline to more kinds of items a customer could potentially want or need, they can sway customers into using Shipt over other services and retailers. Also, during the holiday season, Target removed the minimum price requirement for deliveries, so customers could receive their items on the same day, even if it was something minor. While the minimum has since been reactivated, it does show that Target is willing to adjust their policies to appeal more to the customer.
Shipt sells subscriptions to its service through Target at a $50 discount, and promises that all orders received will be delivered within an hour of placement.