Target pulls out of Memphis fulfillment center

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Target pulls out of Memphis fulfillment center

By Gina Acosta - 02/07/2018

Target is ceasing operations at an e-commerce fulfillment center that opened in mid-2015.
 
According to Twin Cities Business Magazine, Target spokesman Eddie Baeb confirmed the decision in a statement:

“While Target does not disclose details about relationships with vendors, I can confirm we are not renewing our contract for e-commerce fulfillment at the Memphis facility. The decision comes as Target is making significant long-term investments in our team and business. As part of these efforts, we have enhanced the capabilities of Target-operated distribution facilities and expanded the number of stores we use to ship online orders. We will shift the online order capacity from Memphis to Target facilities and to our stores – so that we can provide more efficient and faster deliveries to Target guests,” he said.

Radial, a third-party logistics firm, operates the facility for Target.
 
In an e-mail to Twin Cities Business Magazine, Radial president and CEO Pierre Winand declined to discuss the company’s contract terms with Target. But Winand said: “Radial will cease our operations from the Memphis fulfillment facility on or before April 30, 2018.”

As more people shop online and expect fast shipping times, retailers such as Target are ramping up their ship-from-store fulfillment options. This allows stores to get products to customers faster than they would if they shipped from fulfillment centers.

Interestingly Target has been rolling out same-day home delivery to customers in Memphis through its new online grocery delivery service Shipt.

The Target delivery service is available now in 18 Southeastern cities including Atlanta, Charlotte and Nashville.

The company also plans to hire more than 4,000 shoppers in the Southeast to fulfill orders.