Target expanding next-day delivery, opening new fulfillment centers
It’s the latest move from the retailer that indicates its growing focus on its e-commerce business. Target — one of the pioneers of the small-format concept store — last year said it would focus on opening larger stores in the years to come. One of the most significant changes coming to the larger-format Target stores is a back-room fulfillment space five times larger than at stores of a similar size, which the retailer said would allow it to fulfill digital orders and same-day services more easily. Target last year said digital orders and same-day services accounted for more than 10% of its overall sales.
Since Target opened its first sortation center in Minneapolis in 2020, the retailer has delivered 150% more next-day orders than before it opened the centers. It plans to deliver 50 million packages from sortation centers this year, double the amount delivered from them last year. Target’s next-day deliveries are furnished by third-party delivery service providers or by Shipt, the delivery company it purchased in 2017 for $550 million.