Target expanding next-day delivery to top 35 cities

Core Insights - Target is expanding next-day delivery for online orders to 35 major U.S. metropolitan areas to enhance competition with Walmart and Amazon [1] - The company plans to extend next-day delivery to over 20 additional areas next year while renovating stores into mini-fulfillment centers [2] - Target currently offers same-day delivery to 80% of the U.S. population and two-day shipping to 99% [3] Delivery Expansion - Next-day delivery will be available in markets such as Cleveland, Orlando, and Pittsburgh by the end of October [1] - Free next-day delivery is offered for orders over $35 or with no minimum for Target Circle 360 members or Target credit card users [2] - 85% of goods sold in physical stores are eligible for next-day delivery [2] Logistics and Efficiency - Target's logistics model utilizes stores as fulfillment hubs, enhancing efficiency and reducing costs [5] - The company has increased next-day package deliveries by over 2 million compared to the same period last year [3] - Sortation centers streamline the sorting and routing of packages, improving delivery processing times [6] Competitive Landscape - Amazon delivered over 9 billion items with same-day or next-day service in 2024, while Walmart claims to reach 95% of the U.S. population with similar services [4] - Target's strategy focuses on cost-effective operations in areas with high shipping demand, ensuring profitability in its digital business [7]