Target Acquires Tech Company to Expand Same-Day Delivery
Target Corp. has agreed to acquire Grand Junction, a tech company specializing in solutions for local delivery, to improve and expand its capabilities in this space.
The San Francisco-based company offers a software platform used by retailers, distributors and third-party logistics providers to manage local transportation through a network of more than 700 carriers. It also gives retailers visibility of deliveries and tracks carrier performance.
Currently, it's working with Target on its same-day delivery pilot at the Target store in New York's Tribeca neighborhood, which the retailer first announced in early May. It will work to expand same-day delivery pilot to a few more New York-area stores this fall, and then to other major cities in 2018.
“Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently,” said Arthur Valdez, EVP and chief supply chain and logistics officer at Target. “This acquisition is part of Target’s ongoing efforts to strengthen Target’s supply chain to provide greater speed, reliability and convenience for guests.”
Upon the close of the acquisition, Grand Junction CEO Rob Howard will become Target's VP of technology, and his company's employees will become Target team members.
The move comes at a time when Target competitors Walmart and Amazon.com have been making headlines in their attempts to expand faster delivery capabilities. Seattle-based Amazon has been growing its Prime Now delivery service to new cities this year, including Denver and Milwaukee. Meanwhile, Bentonville, Ark.-based Walmart has been testing out a program that allows associates to earn extra money by dropping off orders on their way home from work, among other initiatives.
Target also has been testing a service allowing for ordering and delivery of everyday essentials by the next day, called Target ReStock.
Minneapolis-based Target operates 1,816 stores.