SCD: Target plans $100M investment to expand next-day delivery

SUPPLY CHAIN DIVE reports:

Dive Brief:

– Target announced a $100-million investment Wednesday to expand next-day delivery capabilities through the addition of more than six new sorting centers.  

– The retailer plans to grow its sortation network from nine to more than 15 facilities by the end of 2026. The company said the centers will expand next-day coverage “across major U.S. markets,” though didn’t specify locations.

– Target expects to deliver roughly 50 million packages from its sortation centers in 2023, twice the amount of last year. Since opening its first facility in 2020, the retailer said it’s seen a 150% increase in the number of orders delivered the next day.

Dive Insight:

The new facilities continue to build upon Target’s stores-as-hubs strategy, which leverages retail space for fulfillment services. The centers eliminate workers’ need to sort packages in backrooms, opening up space to pick and pack more orders.

Sortation centers also consolidate orders and batch deliveries, easing the job for carriers. To speed transportation even further, Target is piloting a project at two sortation centers to allow drivers with the retailer’s Shipt delivery service to utilize larger routes with larger-capacity vehicles…

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