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Target Expands Next-Day Delivery with $100 Million Investment

February 25, 2023 14

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Target will build new facilities to expand its next-day delivery capabilities with a $100 million investment. The retailer will increase from nine to 15+ facilities by the end of 2026. 

Target expects to double its outgoing shipments from sorting centers in 2023, delivering 50 million packages. The increase displays the prominent growth of the centers, which have seen a 150% rise in shipments since opening in 2020. 

“Through our sortation centers and Target Last Mile Delivery capabilities, we’re able to move faster and with more precision — while controlling costs and expanding our network capacity — for years to come,” says Gretchen McCarthy, Chief Global Supply Chain and Logistics Officer, Target. 

The facility expansion comes after recent changes to the chain’s delivery model. Its stores-as-hubs model allows its trucks to travel between stores and sorting facilities multiple times per day. At the facilities, the packages are automatically sorted by ZIP code and loaded onto final mile delivery vans. 

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