Target recently announced that it will acquire same-day delivery platform Shipt for $550 million in cash. This is big news, but it seems many retail analysts are not surprised. Leveraging its network of stores and Shipt’s technology platform puts Target in the running against big same-day delivery services such as Amazon Prime Now and Walmart’s Jet.com.
“This is a competitive reaction which Target had to take to respond to what its main rivals, Walmart and Amazon, are doing,” Sam Cinquegrani, founder and CEO of ObjectWave, a digital strategy and services firm, told FierceRetail. “And ultimately, it’s a good thing for consumers because it’s all about convenience and a great user experience. Target is one retailer that has responded to the competitive threat from online retailers like Amazon. If they can do more to leverage their physical stores to their advantage, I think they will do just fine. To do that, they’ll need to look at other technologies like Beacon and RFID to continue responding to the customers’ needs and wants. Bravo, Target!” Read more at Fierce Retail