Target to acquire Shipt, providing same-day delivery service
Minneapolis-based Target has announced it has come to an agreement to acquire Shipt, a digital same-day delivery platform for $550 million in cash. The retailer will leverage its network of store’s and Shipt’s technological platform to quickly and efficiently bring same-day delivery to consumers across the country.
The retailer will offer same-day delivery on groceries, essentials, home, electronics and other products. Approximately half of the stores will provide the service by early 2018, remaining stores in major markets will see the service roll out before the 2018 holiday season.
“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. 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,” John Mulligan, executive vice president and chief operating officer for Target said. “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.”
Founded in Birmingham, Ala., in 2014, Shipt is a membership-based grocery marketplace and same-day delivery platform. The company leverages a network of over 20,000 personal shoppers to fulfill orders at various retailers to provide delivery within hours in more than 72 markets. As part of the acquisition, Shipt will be a wholly owned Target subsidiary that will continue to run its business independently.
“We are very excited to partner with Target, one of the most loved retailers in the country with a reputation for supporting local communities. Partnering with Target and the national scale they provide allows Shipt to further accelerate our growth, bringing our service to more people, in more markets across the country,” Bill Smith, Shipt’s founder and CEO said. “We’ll continue growing our marketplace and membership base, working with a variety of retailers to drive scale and efficiencies. We look forward to introducing Target guests to the convenience of our same-day delivery services, with the level of personal attention only Shipt can provide.”
Kroger, Chase partner to offer mobile payments
Kroger is teaming up with Chase Pay, the digital engagement wallet from JPMorgan Chase & Co., to offer mobile payments. The initiative will kick off in select retail markets and e-commerce programs in 2018.
Kroger’s payment solutions are a part of the company’s “Restock Kroger Plan.” One of the key strategic drivers is to expand partnerships to create customer value, which includes Kroger forming alliances to accelerate digital and e-commerce platforms.
“Technology is transforming our customers’ experiences and greatly influencing how we are reimagining the store of the future,” said Chris Hjelm, Kroger’s CIO. “Mobile wallets enable a more seamless shopping experience for our customers and at the same time, can help us drive cost out of our business.”
Through the partnership, Chase’s 65 million customers will have an opportunity to use Chase Pay at Kroger for online and in-lane purchases.
Supervalu completes acquisition of Associated Grocers of Florida
Supervalu has completed the previously announced acquisition of Associated Grocers of Florida, in a transaction valued at approximately $193 million. This marks the second completed acquisition for Minneapolis-based Supervalu whose national distribution center continues to expand with annual sales of approximately $560 million reported in its last fiscal year.
The Associated Grocers of Florida which was founded in 1945, supplies full lines of groceries and general merchandise to independent retailers and regional chains throughout Florida, Central America, South America and the Caribbean.
“The addition of Associated Grocers of Florida is another important step on our journey to becoming the wholesaler of choice for grocery retailers,” Mark Gross, Supervalu’s president and chief executive officer, said. “AG of Florida has a tremendous retailer base across central and south Florida and we’ll immediately gain a vibrant group of customers as well as an ability to expand internationally with AG’s customers in territories that include the Caribbean, and Central and South America.”
“I’m also thrilled that Christopher Miller, AG’s former president, will continue with us in a similar role as president of Supervalu Florida going forward. Chris has built a great team and we’re very excited that they’re now a part of our Supervalu family. Between the Unified Grocers and AG of Florida acquisitions, we’ve added substantial talent that will help us meet the rapidly changing needs of the markets we serve, including the growing specialty, organic, Latino and Hispanic markets,” Gross said.