Why Target is acquiring Grand Junction

Target takes a page out of Wal-Mart's acquisition playbook, with plans to grow same-day delivery
Target Agrees to Buy Software Firm to Compete With Amazon
Author

16 August, 2017

Target Corp.is acquiring Grand Junction, a San Francisco-based transportation technology company, as the Minneapolis-based retailer looks to expand its delivery capabilities. Former General Mills executive Liz Nordlie will run Target's privately owned food and beverage brands.

The retailer announced on Monday it agreed to purchase Grand Junction a tech startup whose software is able manage local deliveries by using a network of almost 700 carriers. We'll work together to expand our same-day delivery pilot to a few more New York City-area stores this fall, and then in 2018, we plan to offer the service in more major cities. Details of the deal, which is expected to close soon, were not disclosed. Target plans to expand the service to other NY locations this year, then bring it to other major cities next year.

The CEO and founder of Grand Junction Rob Howard will become the Vice President of Technology for Target.

Target supply chain and logistics officer Arthur Valdez said through a prepared statement that the company would leverage the platform of Grand Junction in order to become faster as well as more efficient in the way it deliveries its products to its clients.

"Whether guests shop online or in a store, they expect to get products quickly and on their terms", said Valdez, who was hired away from Amazon in May.

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Target is buying a delivery logistics company to help it offer same-day delivery service to in-store shoppers.

Valdez told the Minneapolis Star Ledger that a new Target distribution center in Perth Amboy, NJ will help it service the NY area using a faster, real-time replenishment model.

Target has said it will focus on two key areas for growth: groceries and delivery.

Instacart is still doing Target deliveries in Chicago, Minneapolis and San Francisco as part of the test program. Target's mobile app and proven ability to mine consumer data make it one of the few retailers with the parts in place to build a competitive position online.

The appetite for quick deliveries is growing. "At some point, all retailers will need to grapple with the integration of physical footprints with digital store fronts".


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