MINNEAPOLIS, Dec. 13, 2017 /PRNewswire/ -- Target Corp. (NYSE:
TGT) today announced it has agreed to acquire Shipt, Inc., a
leading online same-day delivery platform, for $550 million in cash. Target will leverage its
network of stores and Shipt's proprietary technology platform and
community of shoppers to quickly and efficiently bring same-day
delivery to guests across the country. The acquisition
significantly accelerates Target's digital fulfillment efforts,
bringing same-day delivery services to guests at approximately half
of Target stores by early 2018. The service will be offered from
the majority of Target stores, and in all major markets, before the
2018 holiday season.
At launch, Target will offer same-day delivery of groceries,
essentials, home, electronics and other products, while expanding
the products offered over time. By the end of 2019, same-day
delivery will include all major product categories at Target.
"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," said John Mulligan,
executive vice president and chief operating officer for Target.
"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 2014 and located in Birmingham, Alabama, Shipt is a rapidly
growing membership-based grocery marketplace and same-day delivery
platform. The service leverages an extensive network of over 20,000
personal shoppers to fulfill orders from various retailers and
deliver within hours in more than 72 markets. Shipt values a
personalized, customer-first delivery experience that simplifies
life and saves time for members. Through Shipt's app, members are
connected to local, reliable shoppers who help facilitate a quality
delivery experience that is personalized, efficient and
convenient.
"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," said Bill Smith, Shipt's
founder and CEO. "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."
Shipt will be a wholly owned Target subsidiary, and will
continue to run its business independently. It also plans to expand
partnerships with other retailers seeking same-day, last-mile
capabilities. All current Shipt employees will continue to be
employed by Shipt and will work from their current offices in
Birmingham and San Francisco. Chief Executive Officer
Bill Smith will remain in his
current role, and will report to Target Chief Operating Officer,
John Mulligan. In addition to
same-day delivery capabilities, Target will also leverage Shipt's
expertise as the company enhances and strengthens its supply chain,
including integration with the recently acquired transportation
technology company, Grand Junction.
The transaction is subject to customary closing conditions and
is expected to close prior to the end of calendar year 2017. This
all-cash acquisition will be immaterial to Target's near-term
financial results. It is expected to be modestly accretive to the
company's earnings per share in 2018, while accelerating digital
and total sales growth over the medium term.
Miscellaneous
Statements in this release regarding the
future availability of same-day delivery services at Target stores
through the Shipt network, the expected impact of the transaction
on Target's fiscal 2017 financial results and 2018 earnings per
share, and the expected impact on digital and total sales growth
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are
subject to risks and uncertainties which could cause the Company's
actual results to differ materially. The most important risks and
uncertainties include Shipt's ability to expand its network of
professional shoppers to new markets within expected cost levels,
the satisfaction of all closing conditions and the closing of the
transaction, and other risks that are described in Item 1A of
Target's Form 10-K for the fiscal year ended Jan. 28, 2017. Forward-looking statements speak
only as of the date they are made, and Target does not undertake
any obligation to update any forward-looking statement.
About Target
Minneapolis-based Target Corporation (NYSE:
TGT) serves guests at 1,834 stores and at Target.com. Since 1946,
Target has given 5 percent of its profit to communities, which
today equals millions of dollars a week. For more information,
visit Target.com/Pressroom. For a behind-the-scenes look at Target,
visit Target.com/abullseyeview or follow @TargetNews on
Twitter.
About Shipt
Shipt, the nation's fastest growing online
grocery marketplace, works with leading retailers and local stores
to deliver groceries via a community of shoppers and a convenient
app. Since its founding in 2014, Shipt has been rapidly expanding
and now offers quality, personalized grocery delivery to tens of
millions of households across the United
States. The company currently has offices in Birmingham, AL, and San Francisco, CA. For more information, visit
Shipt.com.
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SOURCE Target Corp