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."
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.