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Target to test next-day delivery service in Minneapolis

A sign for a Target store is seen in the Chicago suburb of Evanston, Illinois, in this file photo taken February 10, 2015. U.S. retailer Target Corp on Tuesday forecast a rise in profit and sales this fiscal year and said it would have the capacity to buy back $2 billion worth of its shares this year. REUTERS/Jim Young/Files

Target Corp plans to test a next-day home delivery service called Target Restock in the Minneapolis area, the company said in a blog post on Monday.

The company said household essentials ordered online, like laundry detergent and coffee, will be packaged at a nearby store, allowing for delivery the next day.

Target and other major brick and mortar retailers are investing heavily in their e-commerce businesses as they try to gain ground on Amazon.com Inc, which revolutionized online retail through aggressive pricing and speedy delivery.

Minneapolis-based Target lagged behind competitors in e-commerce, but is now stepping up its emphasis on such sales. The company had signed a deal with online delivery service Instacart to pick up Target groceries and deliver them to customers in some cities.

The company intends to compete with rivals Wal-Mart Stores Inc and Amazon for same-day delivery.

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