Jaime Keleher, director of regional operations for Shipt, talks about how Shipt works outside Target in Duluth on Thursday morning, Nov. Jaime Keleher, Shipt director of regional operations, said the customer service and communication with Shift is what the company feels sets itself apart from other shopping and delivery services. Shoppers are able to ask about alternatives if a store is out of a product, or shoppers can request items they forgot to order. Like other delivery services, Shipt Shoppers communicate with customers over text though a shielded phone number. “We’re just really excited, especially given where our community is at as far as comfort level being a little bit different about indoor shopping,” said Ashlee Dilley, Target's store director.ĭilley said that while Target has offered same-day drive-up and pickup services, the delivery option is an exciting new feature for Target and the Duluth community, especially as the holiday season approaches. There is also a Shipt Driven service, where customers can place an order through a retailer's website and a Shipt Shopper will pick up the order from Best Buy, Build-a-Bear and Hollister to deliver. A Shipt Shopper will then go to the store, browse the aisles like a regular shopper, then deliver the order in as soon as an hour. Shipt customers can place an order online from Target, Bed Bath & Beyond, CVS, GNC and Office Depot in Duluth. "By adding Shipt to that operation, we're now testing how we can reach guests even faster with efficient local deliveries.Same-day shopping delivery service Shipt launched in Duluth on Thursday morning, providing the community with a way to place orders virtually, and providing flexible employment opportunities for people to shop for those orders. Our new sortation center builds on that model by helping us ship online orders with greater speed and lower costs, while making room for future growth," Mulligan said in a statement. "For years, Target has put our stores at the center of how we serve our guests. Target's attempts to make its delivery method more convenient may be to rival Walmart's two-hour service called Express Delivery and Amazon's one-day service called Prime Now. During the company's most recent earnings call, Mulligan said Target sales on Shipt grew 300% due to the convenient capabilities it offered. Since then, Shipt has become an important asset to Target as the pandemic continues to drive contactless fulfillment. Target said at that time of the deal with Shipt it was one of the largest acquisitions in the company's history. The big-box retailer acquired Shipt in 2017 for $550 million in cash just four months after buying same-day delivery company Grand Junction to expand same-day delivery for Target products.
Sales through Target's digital channels grew by almost $10 billion in 2020 - a rise attributed to a 235% increase in its same-day services such as store pickup, curbside pickup and Shipt. The announcement came following tremendous digital sales growth throughout the 2020 fiscal year. Improving online fulfillment is part of Target's $4 billion annual investment to bolster its operations over the next few years, the company told analysts and investors last month. The new method begins with store employees packaging items for delivery, and then a Target trailer will bring the packages to the nearby sortation center. Once the packages are at the sortation center, Target will use tools acquired from Grand Junction and Deliv to identify the best way to sort, route, deliver to local neighborhoods and subsequently to shoppers.
Target is ramping up its shipping game following a fiscal year that saw digital fulfillment services grow three-digit percentage points.
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