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Retail Wars: Target Offers Same-Day Delivery

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Target Corp. (TGT) is now offering same-day delivery to online shoppers across 47 states by paying a fee of $9.99 per order, the latest move by the retailer in an ongoing retail war with Amazon and Walmart.

The retail giant is using Shipt, a delivery startup it acquired two years ago for $550 million, to provide same-day delivery service.

"With same-day delivery now available directly within the Target.com experience, we've made it even easier for our guests to shop at Target—while still getting the great value, curated product assortment and helpful guest service they've come to expect," said Dawn Block, senior vice president, digital.

Earlier, Target shoppers who wanted to receive their items the same day had to go on Shipt's website and pay a $99 annual membership fee or $14 for a monthly membership.

Now, customers who want to try out Shipt's delivery service can sign up for a free four-week trial or have the option to pay a $9.99 delivery fee for each order on Target.com, and enjoy the benefits of same-day delivery without having to commit to an annual membership.

Customers can now get 65,000 items delivered to their door in as soon as an hour with an order placed directly on Target.com.

Walmart had recently announced next-day delivery option, with a minimum order of $35 on its most popular items. Currently the next-day delivery option is provided with no membership fee on its website for about 220,000 items for customers in Phoenix and Las Vegas. The retail giant says it will expand it to about 75 percent of U.S. customers by the end of the year.

Amazon offers Prime members, who pay a $119 annual fee, free same-day delivery for more than 3 million items and for orders over $35.

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