Target hopes Grand Junction acquisition will help it compete with Amazon

By Lulu Chang Published August 18, 2017

target acquires grand junction store night — Image used with permission by copyright holder

Look out, Amazon. Target is coming for your crown, or at least preparing moves in that direction. The brick and mortar retailer just acquired software company Grand Junction, a San Franciscan startup that connects distributors to a large network of over 700 carriers throughout North America. So what does this all mean? Well, it could be that Target is trying to rival Amazon’s famous two-day delivery standard.

As Target noted in a release, the goal of this new purchase is “to improve and expand Target’s delivery capabilities.” Arthur Valdez, Target’s executive vice president, chief supply chain and logistics officer noted, “Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently. This acquisition is part of Target’s ongoing effort to strengthen Target’s supply chain to provide greater speed, reliability, and convenience for guests.”

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This marks Target’s first acquisition since 2013, and details of the deal have yet to be disclosed. The small Grand Junction team (all of 13 people) will move into Target’s downtown San Francisco office.

It has been difficult for traditional retailers to compete with the behemoth that is Amazon. As ecommerce and online shopping continue to grow in popularity, many companies seem to be realizing that going digital may be the only way to stay relevant.

“Target is transforming its supply chain and logistics capabilities so we can serve guests with more speed and convenience, while creating new offerings and services,” Valdez said in an interview. “Whether guests shop online or in a store, they expect to get products quickly and on their terms.”

Grand Junction is expected to help enormously in this capacity, aiding Target in its same-day delivery capabilities, and perhaps even assembly and installation services.

“Our team is excited about the opportunity to continue our work with Target on same-day delivery service, and for the software platform we created to be a real differentiator for Target throughout its entire network of stores and distribution facilities,” said Rob Howard, Grand Junction CEO. “It’s a thrill to join a brand like Target, especially at a time like this when the company is dedicated to making supply chain and local delivery a game-changer.”

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