Target acquires Shipt

This is the place for general and miscellaneous posts on topics which might extend past the boundaries of any specific region. No non-grocery posts.
Post Reply
pseudo3d
Valued Contributor
Valued Contributor
Posts: 2490
Joined: November 12th, 2015, 7:01 pm
Status: Offline

Target acquires Shipt

Post by pseudo3d » December 13th, 2017, 12:18 pm

https://techcrunch.com/2017/12/13/targe ... 0-million/

This was announced this morning, another ripple effect of Amazon/WFM. But to be honest, I don't know about this one. For one, despite some extensive renovations and resets throughout the chain, I don't think food has really clicked with Target. Their lack of faith with SuperTarget was/is a sign of this, and the food selection is...lacking (I've made this complaint before).

The problem with this is Shipt (and now, by extension Target) has everything to lose with this acquisition (presumably including integration) rather than just a contract. Especially this bit from Shipt's website
From Your Local Store

This is as fresh as it gets. No warehouses, no boxes — just products hand-selected the way you would.
It being allied exclusively Target meaning that other grocers could cut contracts (which would lower Shipt's value), or worse, if Target had some way it favored their store (possibly inflating prices), it could send customers fleeing. I don't know, but it definitely seems more reactionary than well thought-out.

architect
Veteran Member
Veteran Member
Posts: 734
Joined: December 8th, 2015, 3:41 pm
Status: Offline

Re: Target acquires Shipt

Post by architect » December 14th, 2017, 5:01 pm

pseudo3d wrote:
December 13th, 2017, 12:18 pm
https://techcrunch.com/2017/12/13/targe ... 0-million/

This was announced this morning, another ripple effect of Amazon/WFM. But to be honest, I don't know about this one. For one, despite some extensive renovations and resets throughout the chain, I don't think food has really clicked with Target. Their lack of faith with SuperTarget was/is a sign of this, and the food selection is...lacking (I've made this complaint before).

The problem with this is Shipt (and now, by extension Target) has everything to lose with this acquisition (presumably including integration) rather than just a contract. Especially this bit from Shipt's website
From Your Local Store

This is as fresh as it gets. No warehouses, no boxes — just products hand-selected the way you would.
It being allied exclusively Target meaning that other grocers could cut contracts (which would lower Shipt's value), or worse, if Target had some way it favored their store (possibly inflating prices), it could send customers fleeing. I don't know, but it definitely seems more reactionary than well thought-out.
If played correctly, I think that this actually has the potential to be a smart move. Considering the fact that Target is weak in grocery but strong in many other home categories, the value of a Shipt membership immediately goes up with this acquisition and becomes more of a competitor to Amazon Prime. This move benefits consumers by essentially getting the best of both worlds through Target and their local grocer, all wrapped in a single service. It benefits Target by pushing them further in the home delivery battle, while also benefiting local grocery chains who could potentially gain additional customers who sign up for Target, but also decide to shop with said grocers since the customers are already paying for the service. The key is going to integration however, which I am not 100% confident in. Target seems to be struggling with managing inventory and keeping product stocked due to low staffing these days, which could affect Shipt's ability to provide products as promised.

Post Reply