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Target tries out same-day delivery service in select markets

Target will test same-day delivery in three markets as the online shipping war among retailers continues to gain momentum. Target will launch a $10 rush delivery pilot in June in the Minneapolis, Boston and Miami markets, offering guests the ability to order as late as 1:30 p.m. in the afternoon and receive a delivery of qualifying items between 6 p.m. and 9 p.m. the same day, the company stated in its recent quarterly call with analysts.

Later in the year, Target plans to rollout standard shipping from 136 stores in 38 markets across the country. By leveraging the store network as fulfillment centers, it can offer faster, standard shipping — typically one to two days — and provide access to store only items not previously available from Target.com. The retailer stated that it will continue to monitor results to determine further rollout plans.

The retailer also stated that it continues to see “encouraging results” from its recent rollout of in-store pickup of digital orders. These orders make up about 10% of Target’s digital transactions and when guests pick up their items, more than 20% of the time, they take the opportunity to shop the store and spend much more than the average basket, the company stated. In the first quarter, Target expanded the number of SKUs eligible for in-store pickup to more than 60,000, including some shelf stable grocery items.