Target is doubling down on same-day shipping as Walmart and Amazon spar over one-day delivery (TGT)

target store shopper

Target is launching same-day shipping through its own website.
The retailer will continue to use Shipt, which it acquired in 2017, to fulfill orders for same-day delivery in 47 states.
Target's revamped same-day shopping service won't require a Shipt account.
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Target is going all in on same-day delivery.

The company is now offering same-day delivery through its own website, Target.com. This isn't Target's first foray into the same-day fray; the retailer acquired same-day delivery service Shipt for $550 million in 2017. In January, Target expanded its Shipt service to include all major product categories.

As part of its latest push, Target shoppers will be able to order 65,000 items for same-day delivery from Target.com. In a presentation provided to Business Insider, Target said that one out of five of its same-day orders were placed by customers who'd never put in a digital Target order before. The retailer is already reporting repeat rates of nearly 80% for the service in the first quarter.

Target said in a statement that certain products could be delivered "in as soon as an hour." Same-day delivery will be accessible in 47 states and involve 1,500 of Target's stores. The service won't immediately be added to Target's app, but it will be added some time before the 2019 holiday season.

Target will continue to use Shipt to fulfill same-day orders, but shoppers won't necessarily have to fork over an annual membership fee — $49 a year through Target — for the service.

According to a release from Target, customers can either pay a delivery fee of $9.99 or test Shipt out for a free four-week trial. Shoppers will now also be able to put their Target REDcards to use, meaning they could snag rewards and get 5% off their orders.

Target's announcement comes about as retail rivals like Walmart and Amazon spar over next-day delivery. The Minneapolis-based retailer is instead focusing on its stable of pick-up and delivery options, including free order pick-up and drive-up services and free two-day shipping and restocking for customers with a REDcard.

"With same-day delivery now available directly within the Target.com experience, we've made it even easier for our guests to shop at Target — while still getting the great value, curated product assortment and helpful guest service they've come to expect," Target's digital SVP Dawn Block said in a statement.

Are you a Target employee with a story to share? Contact this reporter at acain@businessinsider.com.

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