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VOL. 133 | NO. 25 | Friday, February 2, 2018

Target Launching Same-Day Delivery in Memphis

By Andy Meek

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Shoppers in Memphis will be able to get same-day delivery on orders they make from Target starting Friday, Feb. 8, thanks to Target’s $550 million purchase last year of the Internet-based delivery service Shipt.

The arrangement, in a way, leapfrogs Target ahead of rivals like Amazon, which currently does not have a same-day delivery option available for Memphis shoppers.

Target will begin offering same-day delivery in Memphis through Shipt starting Feb. 8. (target.com)

As The Daily News was first to report, Target acknowledged this week that its Memphis fulfillment center in southeast Memphis is closing in April, resulting in 486 layoffs. A Target spokesman attributed that decision to a major and long-term shift in the retailer’s business.

“We will shift the online order capacity from Memphis to Target facilities and to our stores,” the spokesman said, “so that we can provide more efficient and faster deliveries to Target guests."

The Shipt announcement would appear to be a consequence of that shift.

The way it will work for Target customers in the area:

Shipt charges members a $99 yearly fee. As a promotion, Shipt is offering that membership for $49. In exchange, there is no extra cost for the same-day delivery service available when Shipt users open the app and select items they want to buy.

Shipt users in Memphis currently use the app to make purchases from Kroger stores. Open the app, select any number of grocery items from Kroger, and Shipt delivers the items directly to the user.

Starting Feb. 8, when Shipt users open the app, they’ll be able to make orders from Target stores in the Memphis area. A Target spokesman said customers will be “zoned,” so that Shipt will head to the Target store nearest the customer, pick up the items that the customer has selected and deliver them to the user.

The launch of same-day delivery via Shipt in Memphis comes at the same time Target is rolling out the option across 18 markets in five states, including multiple markets in Alabama, Georgia, North Carolina, South Carolina and in Tennessee. Also this year, Target is planning to remodel 300 stores, in addition to open new stores.

Target says the majority of its stores will offer the service with Shipt by the holiday season at the end of this year, and by the end of 2019, same-day delivery will include “all major product categories at Target.”

"Now with Shipt, if you order, in a couple of hours, I'll put it right on your kitchen table," Target CEO Brian Cornell said Friday, Feb. 2, on CNBC’s "Fast Money Halftime Report." 

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