Markets

Target introduces same-day delivery for some in-store shoppers

August 14, 2017 / 5:23 PM EDT / AP

Target CEO on holiday sales, building smaller stores

NEW YORK — Target is shoring up two key areas of its business as it tries to take on Amazon and Walmart.

The retailer on Monday announced moves aimed at improving its grocery section and delivery offerings.

To boost its grocery business, the company said it hired executives from rival Walmart and from Cheerios maker General Mills. The grocery section at Target (TGT) hasn't been as big a draw for shoppers as the department has been for Walmart.

Mark Kenny, who will join Target from Walmart (WMT) later this month, will oversee Target's meat, seafood and deli sections. Former General Mills executive Liz Nordlie will run Target's privately owned food and beverage brands.

The Minneapolis-based retailer is buying delivery logistics company Grand Junction to help it offer same-day delivery service to in-store shoppers, it said earlier Monday.

Software made by Grand Junction, based in San Francisco, connects retailers with about 700 delivery companies around the country that pick up items from stores or distribution centers and take them to customers.

Free shipping wars: Retailers ramp up battle for online customers

Expanding delivery and making it faster have been key areas for retailers trying to attract convenience-seeking shoppers. Target and Walmart have adjusted their shipping programs as they try to lure online shoppers away from Amazon.

Target's move is aimed not at online shoppers, but at making buying an easier decision for those in store. The company has been working with Grand Junction to test same-day delivery at a New York store. Shoppers there can ask to have heavy bags, a sofa or anything else delivered that day for a fee, which is calculated based on time and location.

Target plans to expand the service to other New York locations this year and bring it to other major cities next year. The company said it eventually plans to use the software to offer faster deliveries for online orders.

Target Corp. did not say how much it will pay for Grand Junction. It said the company will become a part of the company's technology unit and that Grand Junction would stop working with other retailers when those contracts end.