Target is getting serious about improving its last mile delivery, logistics and supply chain capabilities, with the acquisition of Grand Junction, a technology transportation company offering software that manages local delivery throughout North America. Terms of the transaction have not been disclosed.
The move hints that Target is seeking to bring companywide same-day delivery closer to reality. Currently, Grand Junction is working with Target on its same-day delivery pilot at its store in New York City’s Tribeca neighborhood.
In a Q&A on the Target blog, called A Bullseye View, Arthur Valdez, EVP and Chief Supply Chain and Logistics Officer of Target, noted that the retailer plans to expand the same-day delivery pilot to a few more New York City-area stores in fall 2017. In 2018, the retailer plans to offer the service in more major cities. Valdez noted that possible services such as assembly and installation will be included with the addition of Grand Junction’s technology and carrier network.
Grand Junction links retailers and other distributors to a network of more than 700 carriers across North America, and its software is designed to give retailers visibility into deliveries and track carrier performance. Upon the deal’s closing, Grand Junction’s employees will become Target team members.
As Amazon continues its e-Commerce dominance and Walmart plays catchup via its acquisition spree, Target is prioritizing its supply chain to boost its omnichannel presence. Target already has been testing next-day delivery in its Minneapolis market, called Target Restock.
The deal is Target’s second e-Commerce investment in 2017. In May, Target led a $170 million funding round in online mattress seller Casper, contributing approximately $75 million to the investment.