Target Unveils $100M Plan to Improve Last-Mile Delivery — Retail Bum

Target plans to make a $100 million investment in scaling its sorting facilities.

The investment will be used to open six new locations by the end of 2026, raising the total count to 15.

The big box retailer currently operates nine locations in Colorado, Georgia, Illinois, Minnesota, and Pennsylvania, two of which opened last month in Chicago and Denver.

The company noted that making investments in its sorting facilities has been key to boosting the share of next-day deliveries by more than 150%.

“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,” said Gretchen McCarthy, Target’s chief global supply chain & logistics officer.

In addition to making these investments, the company is testing larger capacity vehicles and expanding its partnership with Shipt, enabling drivers to deliver a larger number of packages. The company is already testing larger capacity vehicles at two sorting locations and has plans to expand their usage across the country in the coming years.

Target’s investment in scaling its sorting infrastructure is part of its effort to double its delivery capacity to over 50 million packages by the end of 2023. It will also help the company’s retail staff and deliver new in-store and online shopping efficiencies.

Originally published at https://retailbum.com on February 23, 2023.