Minneapolis, MN – Target Corporation is accelerating its next-day delivery services, announcing plans to expand to 35 additional U.S. metro areas by the end of October 2024. This strategic move aims to enhance its competitive edge against retail giants like Amazon and Walmart by offering customers faster and more convenient delivery options.
With growing consumer demand for rapid delivery, Target’s expansion underscores the company’s commitment to improving customer experience and capturing a larger share of the online shopping market.
Target’s Aggressive Expansion of Next-Day Delivery Services
Target is set to include major cities such as Charlotte, Cleveland, Kansas City, Orlando, Pittsburgh, San Diego, St. Louis, and Tampa in its next-day delivery network this year. By doing so, Target aims to broaden its reach in the e-commerce arena where speed is a critical factor for consumers.
- Plans to add 35 new metro areas for next-day delivery by October 2024.
- Additional 20 metro areas targeted for expansion in 2026.
- Currently offers same-day delivery to 80% of the U.S. population and two-day shipping to 99%.
- Offers free store pickup and drive-up services for online orders to enhance convenience.
How Target Measures Up Against Its Competitors
Target’s initiative comes amid fierce competition with Amazon and Walmart, who continue to increase their own delivery capabilities.
- Amazon expanded its same-day delivery sites for Prime members by over 60% in 2024, currently covering more than 140 metro areas.
- Walmart has delivered 7.1 billion units via same-day or next-day delivery in the last 12 months, reaching 95% of the U.S. population with next-day or two-day shipping.
- Walmart plans to expand next-day delivery in major cities such as Atlanta, Chicago, Houston, and Los Angeles, especially for third-party marketplace items.
Business Context Behind Target’s Expansion
This delivery expansion comes at a pivotal moment for Target, which operates over 1,900 stores nationwide. The company reported a 21% decline in net income in the quarter ending August 2, 2024, alongside flat or declining comparable sales in eight of the past ten quarters.
To steer the company back towards growth, Target announced in August that Michael Fiddelke, the Chief Operating Officer and a 20-year veteran of the company, will succeed CEO Brian Cornell as of February 1, 2026.
“Mike was the right candidate to lead our business back to growth,” said Brian Cornell during the announcement.
Innovative Fulfillment Strategies To Boost Delivery Speed
Gretchen McCarthy, Target’s Chief Supply Chain and Logistics Officer, revealed the company is shifting from a national fulfillment model toward a market-based approach. This leverages stores more strategically while utilizing fulfillment centers where it can improve delivery speed without sacrificing profitability.
“I think about us moving from this national fulfillment model to this market-based approach,” McCarthy explained to The Associated Press.
This approach aims to maximize efficiency and enhance customer satisfaction as online retail becomes increasingly competitive.
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What Does This Mean for Consumers and Retail?
- Faster delivery times will enhance the shopping experience and convenience for millions across the newly added metro areas.
- Heightened competition pushes retailers to innovate and improve logistics capabilities continually.
- Consumers can expect more options such as free store pickups and drive-up services as part of the evolving retail landscape.
What do you think about Target’s next-day delivery expansion? Have you experienced their delivery services in your city? Share your thoughts in the comments below!