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Target (TGT) Set to Offer Same-Day Delivery Service in Hawaii

Zacks Equity Research

In a bid to enhance customers shopping experience and stay competitive, Target Corporation TGT has been aggressively undertaking various strategies. In sync with this, the company is steadily expanding its same-day delivery service. Recently, it announced plans to launch same-day delivery of its more than 55,000 groceries, electronics, toys and other assortments via Shipt in Hawaii. This service will begin on Feb 7, 2019, in Hawaii metro areas — Honolulu, Hilo, Kahului and Kailua.

Earlier, the company launched same-day delivery services in areas of Peninsula, Maryland, Central California, East Bay, North Bay, San Francisco and San Jose, Salinas, Santa Cruz, San Luis Obispo, and Santa Maria.

The latest move will enable more than 300,000 households in Hawaii receive products within an hour. Further, the Shipt platform will allow members to easily search as well as shop in-store products online, following the commencement of the service. Additionally, the platform allows members to note preferences, select a one-hour delivery window and make payments for the purchases done.

Markedly, new members who sign up on Shipt before Feb 7 will be able to avail a yearly membership for $49 (usually $99). The annual membership will have free, unlimited delivery on orders above $35.

These apart, Target acquired a transportation technology company — Grand Junction — to expand its supply chain and improve delivery capabilities. Grand Junction provides a platform that allows retailers, distributors and third-party logistics providers to manage local deliveries through a network of more than 700 carriers. Drive Up, an app-based service, is another initiative by Target to expedite the shopping process. The service allows customers to place orders using the Target app and have them delivered to their cars.

The company is also deploying resources to enhance omni-channel capacities, come up with new brands and remodel or refurbish stores. Target has adopted cost reduction strategy, rationalization of supply chain with same-day delivery of in-store purchases and technology and process improvements. These endeavors helped it to deliver decent comparable sales numbers for the November-December period. (Read: Target Posts Solid Holiday Numbers Unlike Few Other Retailers)

We note that this Zacks Rank #3 (Hold) stock has gained 9.6% in the past month against the industry’s 6.6% growth.

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Tuesday Morning Corporation TUES delivered average positive earnings surprise of 16.5% in the trailing four quarters. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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