Target Corp. (NYSE: TGT) announced on Monday that it will acquire San Francisco startup, Grand Junction, as a means to improve its delivery capabilities.
“With this acquisition, Target will have immediate access to Grand Junction’s technology and carrier network, which will accelerate the work we’re doing to improve our speed of delivery. It will also boost our ability to offer new services – like same-day delivery, and even assembly and installation – to our guests,” said Arthur Valdez, Target’s chief supply chain and logistics officer and a former Amazon executive. Grand Junction already takes care of the same-day delivery Target is piloting at its Tribeca store in Manhattan.
According to the company’s website, Grand Junction is the only provider of same-day delivery in every market in the US and Canada, allowing leading retailers, 3PLs, distributors, and start-ups to offer local delivery through its technology platform and network of 700 local carriers. The comprehensive technology platform saves users millions by reducing delivery cost, improving the customer experience, and empowering them with real-time visibility.
Target's e-commerce grew 22% last quarter, a solid pace to be sure, but below the growth enjoyed by Walmart and Amazon. Financial terms of the Grand Junction deal were not disclosed. The deal is Target's second e-commerce investment in 2017: in May it took a $75 million stake in online mattress seller Casper Sleep Inc.