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Target takes on Amazon with plans for same-day shipping next year

MINNEAPOLIS — Target is going head-to-head with Amazon.

The company is buying the grocery-delivery-startup Shipt for $550 million.

Target plans to ramp up same-day delivery at about half of its stores by early 2018, the retailer said, then all major markets by the 2018 holiday season.

The service will require a $99 annual fee.

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At launch, Target said it will offer same-day delivery of groceries, essentials, home, electronics and other products, while expanding the products offered over time.

Competition between retailers for same-day service is growing fierce, with Walmart, Amazon and Best Buy all speeding up delivery times to customers.

Founded in 2014, Shipt leverages an extensive network of more than 20,000 personal shoppers to fulfill orders from various retailers and delivers within hours in more than 72 markets.

It is not currently available in the Denver area.