- Target‘s stock jumped on the news it acquired the Alabama-based delivery startup Shipt for $US550 million.
- Retailers have been finding ways to respond to the threat of Amazon’s entrance into the grocery business.
- Check out Target’s stock price in real time here.
Target‘s stock jumped on Wednesday, up 1.43% at $US61.83, on Wednesday after the company announced that it was acquiring Alabama-based delivery startup Shipt for $US550 million. The move is a counter to the threat of Amazon’s entry into the grocery-delivery business.
Target wants to bring same-day delivery service to Target customers who sign up for Shipt, which utilises the voice-enabled Google Express, a same-day and overnight shopping and delivery service. Target said it will leverage Shipt’s existing supply chain expertise and integrate it with its recent acquisition of transportation technology company, Grand Junction.
Retailers have scrambled to protect their market share against the threat of the Amazon-Whole Foods merger. The ecommerce giant temporarily lowered prices in Whole Foods’ in-store locations, and ramped up its same-day and overnight delivery options.
Elsewhere in the industry, Walmart partnered with same-day grocery-delivery service, Deliv, which has operations in 35 markets in a sign that the company is looking to expand its delivery business across the US.
Shares of Target are down 14.96% this year.
Business Insider Emails & Alerts
Site highlights each day to your inbox.