In testing same-day delivery with a $9.99 fee in nine markets prior to the nationwide launch, Target said basket sizes grew approximately 10% to 15% on Target.com, compared with instances when shoppers had to go through Shipt's web site to get same-day delivery.
Customers will also be able to pay with their Target REDcard to receive five percent off their purchases in addition to taking advantage of weekly ad promos, where Target gift cards are presented.
Until now Target customers needed to use Shipt's mobile app or website to shop for groceries and other items, which are delivered within a few hours the same day.
Walmart also will be offering to have one of its employees deliver fresh groceries and put them in your refrigerator when you're not home. This includes free curbside pickup at 1,400 stores and free in-store pickup at all 1,850 U.S. Target stores.
The orders are fulfilled by a delivery startup called Shipt that Target bought two years ago, and there's a flat fee of $9.99. Although Target has offered same-day shipping in the past, the retailer required shoppers to be Shipt members. Same-day delivery will be accessible in 47 states and involve 1,500 of Target's stores. While the same-day delivery option is now live on desktop and mobile web browsers, it will be incorporated in the mobile app before the holiday season. About 23% said they planned to place more orders for same-day delivery.
Target's moves come as Walmart and Amazon speed up their own online deliveries.
Ultimately, she said, "I don't think the customer experience is sustainable". Both Amazon and Walmart offer next-day delivery on some items of course.
For Target's newly expanded same-day delivery option, the company has created a dedicated shopping section on its website.