Grocery Gunfight: Can Incumbents Fend Off Amazon?

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On Dec 13, Target Corporation TGT made significant headway in the same-day delivery race by acquiring grocery delivery company Shipt for $550 million. The landmark deal was a must do for Target given the rapidly changing retailer landscape. In the current scenario, failure to offer same-day store to home delivery could mean curtains for nearly every retailer.

Already, Wal-Mart Stores, Inc. WMT is beginning to offer grocery pickups at more of its outlets and is looking to launch same-day delivery services. Amazon.com Inc. AMZN is also making concerted efforts on this front, with more such initiatives likely following its much vaunted Whole Foods acquisition.

This is why Target had no choice but to snag a delivery specialist like Shipt. Moreover, Target is looking to protect its online sales kitty, which swelled to 24% during last quarter.


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