Move intended to improve retailer's delivery capabilities

MINNEAPOLIS — Target Corp. has acquired a transportation technology company to enhance its delivery capabilities.

The company — San Francisco-based Grand Junction — is already working with Target on a delivery pilot at its store in New York’s Tribeca neighborhood.

Grand Junction uses its software and data to connect retailers with local delivery services to offer same-day deliveries of merchandise ordered online.

Arthur Valdez

“Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently,” Arthur Valdez, executive vice president, chief supply chain and logistics officer at Target, said in a statement. “This acquisition is part of Target’s ongoing efforts to strengthen Target’s supply chain to provide greater speed, reliability and convenience for guests.”

In a blog post on Target’s corporate website, Valdez said that Grand Junction will also help Target offer product assembly, installation and other services.

“Grand Junction will become part of our technology team, which is already a strong partner in our supply chain transformation efforts,” Valdez said in the post. “We’ll work together to expand our same-day delivery pilot to a few more New York City area stores this fall, and then in 2018 we plan to offer the service in more major cities. Beyond that, we’ll leverage Grand Junction’s platform — which is already used by hundreds of carriers — to become even faster and more efficient in how we get products to our guests.”

Rob Howard

Following the transaction, Grand Junction founder and chief executive officer Rob Howard will become a vice president of technology at Target.

“Target is seizing a tremendous opportunity to leverage local delivery as a retail differentiator,” Howard said. “We’re thrilled about helping to pursue this opportunity, and to join Target at this unprecedented time in retail.”

Target has become more aggressive about testing delivery options in recent years. In June the company began testing a next-day delivery of household items, called Target Restock, in the Minneapolis area. That service is aimed at holders of the retailer’s Target RedCard affinity credit card.