As Target makes a splashy entrance on the same-day delivery front and goes head to head with Amazon, its next battleground will be right here in the Twin Cities.
The retailer will begin offering home delivery through Shipt of groceries, essentials, electronics, toys and other products in its hometown starting March 1. This will be one of the first new markets for Shipt since it was purchased by Minneapolis-based Target late last year — and will be followed by many more in coming months.
When it rolls out here, Shipt will make deliveries from about 50 Target stores and will reach nearly 1.2 million households, including the northern and southern suburbs.
To support the rollout, Target and Alabama-based Shipt are recruiting workers aggressively, offering introductory bonuses as they look to hire as many as 4,000 shoppers and delivery people in the Twin Cities.
In total, Shipt plans to hire more than 100,000 people this year as it works to get same-day delivery up and running from nearly half of Target's 1,822 stores in the next few months and from a majority of its stores by the holidays.
"The team is moving remarkably quick," said John Mulligan, Target's chief operations officer. "We're going to be in all the major markets. And we bring a breadth of assortment that is not just food and beverage and grocery. We will have virtually the entire store by the end of the year, so that's a fantastic advantage."
Initially, about 55,000 items, or more than half of a typical Target store, will be available for delivery through Shipt, which charges an annual membership of $99 for unlimited deliveries of over $35. To entice Twin Cities shoppers to give it a shot, it is offering a discounted annual rate of $49 to people who sign up before March 1.
Target hopes to get the rest of its inventory, including home and apparel, on the Shipt platform later this year.