Target, Shipt Now Offer Delivery in New York & Pennsylvania

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In a bid to boost customers shopping experience, Target CorporationTGT is aggressively undertaking various strategies. In sync with this, the company has recently announced plans to expand its same-day grocery delivery services for its more than 55,000 groceries, electronics, toys and other assortments via Shipt to New York and Pennsylvania. This option will be available from Sep 27, 2018 in areas of Binghamton in New York along with Allentown, Harrisburg, Lancaster, Reading, Scranton/Wilkes-Barre and York-Hanover areas in Pennsylvania.

This move will enable 1.4 million consumers in these seven markets to avail the service, and thereby get products delivered within an hour. Also, the Shipt platform will allow its members to easily search as well as shop in-store products online, following the commencement of the service. Additionally, it allows members to provide preferences, select a one-hour delivery window and make payments for the purchases done.

Markedly, new members who sign up on Shipt before Sep 20 will be able to avail a yearly membership for $49 (usually $99). The annual membership will have free, unlimited delivery on orders above $35. We also note that there isn't any additional membership fees for the service, unlike its leading rival,, Inc. AMZN that requires Prime membership to avail this facility. In this face-off, other leading players in the retail space like Walmart Inc. WMT and The Kroger Co. KR have also been making investments in the same direction.

Moving ahead, Target intends to offer same-day delivery of groceries, essentials, home, electronics and other products from most of its stores through Shipt by the holiday season of 2018. Also, this service can be accessible by roughly 65% of U.S. households across 180 markets by the end of the calendar year. In 2019, same-day delivery is expected to cover all the company's major product assortments.

Target also acquired a transportation technology company - Grand Junction - to expand its supply chain and improve delivery capabilities. Grand Junction provides a platform that allows retailers, distributors and third-party logistics providers to manage local deliveries through a network of more than 700 carriers. Drive Up, an app-based service, is another initiative by Target to expedite the shopping process. The service allows customers to place orders using the Target app and have them delivered to their cars.

This company is deploying resources to enhance omni-channel capacities, coming up with new brands, remodeling or refurbishing stores, and expanding same-day delivery options. It has undertaken rationalization of supply chain with same-day delivery of in-store purchases for a flat fee along with technology and process improvements.

These initiatives have aided this Zacks Rank #2 (Buy) stock to surge 35% year to date, while the industry grew 26%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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