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Target begins roll out of next-day delivery to 20 more cities
Yahoo Finance· 2026-03-04 20:52
Core Insights - Target Corp. is expanding its next-day delivery service to 20 additional metropolitan areas, increasing the total to over 50 cities where consumers can receive online orders quickly [1][2] - The expansion will enable next-day delivery to reach 60% of the U.S. population, as part of Target's strategy to transform stores into mini-fulfillment centers [2][3] Delivery Expansion - New locations for next-day delivery include cities such as Birmingham, Alabama; Santa Barbara, California; Fort Myers, Florida; and Honolulu [3] - Currently, Target offers next-day delivery in approximately 35 large markets, with plans to enhance this service as part of a $2 billion investment in stores and operations by 2026 [3] Digital Sales and Fulfillment - Target's same-day services generated over $14 billion in sales last year, accounting for two-thirds of total digital sales [4] - Two-thirds of digital sales are fulfilled the same day through various methods, including drive-up, in-store pickup, or same-day delivery for Target Circle 360 members [3][4] Marketplace Growth - Target Plus, the company's third-party marketplace, reported more than 30% growth [5] - Next-day delivery is free for orders over $35 or with no minimum for Target Circle 360 members or Target credit card users [5] Logistics and Efficiency - Target's logistics model utilizes stores as fulfillment hubs, which enhances efficiency and reduces costs [5] - The company retrieves packages from local stores to sort and route them for delivery, with 30 to 40 local stores feeding each sortation center based on market conditions [5] - Removing sorting and packing from store backrooms saves time and space, allowing store teams to fulfill more orders [6]