Given the busy schedule of customers and need for hassle-free shopping, same-day delivery is much in demand now. To fulfill this, Target CorporationTGT is leaving no stone unturned to satisfy customers' growing needs. The company recently announced that it will commence same-day delivery service in the Northwest through Shipt.
This follows the announcement to initiate same-day delivery in New England, Philadelphia, Washington, D.C. and Baltimore for more than 55,000 groceries, essentials, home, electronics, toys and other products.
Thanks to Shipt, consumers across Eugene and Greater Portland in Oregon; Boise Metro Area in Idaho; Seattle and Spokane Metro Areas in Washington will get products delivered within an hour.
Interestingly, Target is trying to gain customers by coming up with new offers. For those signing up for the service prior to the launch, the company has announced an annual membership fee offer of $49 instead of the usual $99. Also, with the annual membership, customers can avail free delivery on orders above $35.
Target, which shares space with Costco COST , is going the extra mile to deliver seamless, same-day shopping experience to customers. The company also aims to be the first retailer to offer same-day delivery in almost every major market by the holiday season. According to BisReport analysts, the same-day delivery market is expected to reach a value of $4620 million by 2021. Given the bountiful opportunities in this niche, we expect the company to gain traction in the market in the near term.
Moreover, according to Nielsen and the Food Marketing Institute, although only 23% of consumers in the United States buy groceries online, the percentage is likely to bump up to a whopping 70% in the next five to seven years. So it can be assumed that the same-day delivery space will heat up pretty soon and the company clearly is gearing up to make the most of it. A couple of key players in the same-day delivery space are Amazon AMZN and Walmart WMT .
Over the past three months, Target has outperformed its industr y. The stock has gained 4.9% against the industry's decline of 1.1%. This Zacks Rank #3 (Hold) company's efforts to expand its customer base are boosting investors' confidence. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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