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."
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion