CNBC: Target to Buy Grocery Delivery Service Shipt for $550 Million

Target is betting on a lot more online shopping from its customers. According to a recent CNBC article, the company is planning to acquire same-day delivery service platform Shipt for $550 million. After big announcements from Amazon and Walmart this year, Target hopes to compete in the industry of quick delivery, including groceries.

"With Shipt's network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country," said Target Chief Operating Officer, John Mulligan.

Early next year, Target will be offering same-day delivery for groceries, electronics and home furnishings from Shipt and customers will need to pay an annual $99 fee. But despite being owned by Target, Shipt will offer its services to other retailers like Costo and Kroger.