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Associated Press
New York

Target buys tech company to help it offer same-day delivery

Target store
Target store
M. Spencer Green | AP 2012

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Target said Monday it is buying a delivery logistics company to help it offer same-day delivery service to in-store shoppers.

Software made by San Francisco-based Grand Junction connects retailers with about 700 delivery companies around the country that pick up items from stores or distribution centers and take them to customers.

Expanding delivery and making it faster have been key areas for retailers trying to attract convenience-seeking shoppers. Target and Walmart have adjusted their shipping programs as they try to lure online shoppers away from Amazon.

Target's latest move is aimed not at online shoppers, but at making buying an easier decision for in-store shoppers. The company has been working with Grand Junction to test same-day delivery at a New York store. Shoppers there can ask to have heavy bags, a sofa or anything else delivered that day for a fee, that's calculated based on time and location. Target plans to expand the service to other New York locations this year, and then bring it to other major cities next year. The company said it eventually plans to use the software to offer faster deliveries for online orders.

Target Corp. said Grand Junction will become a part of the company's technology unit and said Grand Junction will stop working with other retailers when those contracts end.

Minneapolis-based Target did not say how much it will pay for Grand Junction.