Target Corp. acquired online grocery delivery service Shipt, Inc. for $550 million in cash, allowing the mega-retailer to offer same-day delivery from half of its stores by the end of 2018. The $550 million cash deal will enable Target to directly compete with online and brick and mortar stores capable of bringing goods to shoppers’ doorsteps within hours. Faegre Baker Daniels represented Target Corp. in the acquisition.
The deal included the promise that Shipt, founded in 2014 in Birmingham, Alabama, will continue to run its business independently. Current Shipt employees will continue to be employed by Shipt, and CEO Bill Smith will report to Target COO John Mulligan.