Delivery and transportation companies have become hot commodities for retailers such as Wal-Mart and Target Corp., which are looking for ways to combat Amazon’s online dominance.Target raised the ante Wednesday, announcing that it's agreed to acquire Shipt, an online same-day delivery platform for $550 million in cash. The acquisition will help Target leverage its network of stores as well as Shipt’s proprietary technology platform and community of shoppers, allowing the retailer to quickly and efficiently bring same-day delivery to customers.Shipt, a fast-growing membership-based grocery marketplace and same-day delivery platform, leverages a network of over 20,000 personal shoppers to fulfill orders from various retailers and deliver within hours in more than 72 markets.Target said the acquisition will significantly accelerate its digital fulfillment efforts, which have been cited by retail industry experts as being not as robust as they could be.Wall Street apparently liked the move, sending Target stock up 2.57 percent to $62.59 on the New York Stock Exchange.
“Target’s announcement is positive for the company, and an example of the speed with which Target is attempting to expand and enhance its online channel,” said Moody’s lead retail analyst Charlie O’Shea. “While it won't affect Target’s capability this holiday season, the fact that Target will have this service in place during 2018 will significantly improve its online competitive position since the service is integrated and rolled out to customers. This is yet another example of a bricks-and-mortar retailer leveraging its physical assets to improve its online offerings.”
O'Shea said that many retailers already ship products ordered online from stores. "This will allow Target to deliver products out of stores," he said. "It will reduce inventory levels because you don’t need as much product. The best bricks-and-mortar retailers will have one pile of inventory for both channels."
"Same-day delivery will soon be par for the course in the same way that free two-day shipping and buy-online-pick-up-in-store has become standard," said Chuck Grom, a retail analyst at Gordon Haskett Research Advisors. "The team from Minneapolis is no longer sitting back on its heels, but is instead making thoughtful decisions to repurpose assets and improve the customer experience. Strategically, Target is planning to augment the numbers of participants on the Shipt platform over time, creating its own digital ecosystem that's different than the marketplace both Wal-Mart and Amazon successfully created."
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion