Dive Brief:
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Target is bringing same-day delivery via Shipt to the greater New York City metro area this summer, according to a press release from the companies. Shipt will hire 2,000 shoppers in the area to oversee and make the deliveries.
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The service, which delivers products in as little as an hour, will begin in the Hudson Valley and Kingston, New York on July 31. By Aug. 7, the service will be available in Long Island; by Aug. 9 in the Bronx, Brooklyn, Manhattan, Queens and Staten Island; and by Aug. 14 in Mount Kisco and White Plains.
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New Shipt members who sign up before Aug. 14 can snag an annual membership for $49 (down from the regular $99 price). The announcement is part of the company's previously disclosed plan to scale Shipt nationwide to most stores by the start of the holiday season. The service recently rolled out in upstate New York in June.
Dive Insight:
In less than a year since Target bought Shipt, the mass merchant has quickly used the startup's expertise to fuel delivery ambitions that aim to keep it on par with rivals like Amazon and Walmart.
By the end of the year, Target said that Shipt will be available to 65% of U.S. households across 180 markets, reaching 80 million households. For the time being, the same-day service is limited to certain product categories: groceries, essentials, home, electronics and toys. By 2019, it will expand to include all major categories, the company said.
New York City is a big market for every retailer, but services like these in major metropolitan markets are especially important for Target, which is making a concerted effort to appeal to young families and shoppers with its "cheap chic" reputation. For this urban demographic, convenient services like same-day delivery are key. So are small-format stores that aim to serve the needs of small neighborhoods. As part of a larger years-long plan to build out these small stores, Target announced in April that several will be coming to New York neighborhoods like Staten Island and Astoria, Queens.
Getting convenience right in the market has been a priority for competitor Walmart too. Earlier this month, the retail giant announced plans for same-day delivery in the area for Jet.com shoppers thanks to a new fulfillment facility in the Bronx opening this fall. Walmart's innovation arm, Store No. 8, has also incubated a new company, Jetblack, that is testing a text-based concierge and shopping service for busy, NYC parents.