Core Insights - Target is testing new methods for next-day delivery, including shifting fulfillment to less busy stores, opening a new overnight delivery facility, and utilizing gig workers for deliveries [2][3]. Group 1: Delivery Strategy - Target's strategy includes using less busy stores for fulfilling next-day orders, which has resulted in faster delivery and reduced costs [3]. - The new sortation center in Cleveland, operated by Ryder System, batches orders by neighborhood for delivery after stores pick and pack them [3]. - The company is leveraging its acquisition of Shipt to handle some deliveries, aiming to provide multiple delivery options for customers [4]. Group 2: Competitive Landscape - Target's approach to fulfilling online orders through its stores helps streamline inventory and cut shipping costs, similar to strategies employed by competitors like Amazon and Walmart [5]. - Retail giants are increasingly building in-house delivery networks to control the logistics from order to doorstep, which is seen as a critical competitive factor [6]. - Target reported a 150% increase in next-day deliveries due to its sortation centers in 2023 [6].