Target Tests Same Day Delivery

The retail giant is retooling its grocery section and online shopping options.

shopping carts in target
Photo: Bloomberg / Getty Images

Target is much-beloved for its inexpensive selection of home goods, but the retailer is still looking to increase sales from its growing grocery section. One way the company hopes to draw customers toward its food offerings is by expanding its delivery service to include same-day shipments.

Just last week, the company announced that it had hired two new executives who came from General Mills and Walmart to help make its grocery business more appealing to consumers. At the same time, Target also said that it would begin offering next-day delivery service via a new program called Restock, which will let customers fill up one box with 45 pounds of goods, at a rate of $4.99 per box shipped directly to your door. At the time, TechCrunch reported that Target had also purchased the transportation company Grand Junction, which would help the retailer institute same-day delivery.

"Grand Junction's technology and algorithms will help Target deliver to guests faster and more efficiently," Target's chief supply chain and logistics officer, Arthur Valdez, said in a statement. "This acquisition is part of ongoing efforts to strengthen Target's supply chain to provide greater speed, reliability, and convenience for guests."

The company started testing out same day delivery in New York City on Monday. The move might be part of a bigger plan to compete with AmazonFresh, which is making its own moves to dominate the food and grocery industry with its acquisition of Whole Foods, along with creating a larger grocery delivery footprint.

Amazon is facing plenty of pushback from a variety of competitors as it continues to grow. Take Aldi, which is quietly expanding across the United States: The grocery store chain recently partnered with Instacart to launch online grocery delivery, which may also prove to be in direct competition with AmazonFresh. It looks like the good old-fashioned brick and mortar store won't be going down without a fight.

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