Target expands next-day delivery service to an additional 20 cities

Target Expands Next-Day Delivery to More Cities

Target is broadening its next-day delivery service to include 20 additional metropolitan regions, raising the total to over 50 cities where customers can receive online purchases quickly.

During its fourth-quarter earnings announcement, the nation’s eighth-largest retailer revealed plans to introduce next-day delivery to even more locations this spring. As Target continues to convert stores into mini-fulfillment centers, this expansion will make next-day delivery accessible to 60% of Americans.

According to company information, cities such as Birmingham (Alabama), Santa Barbara (California), Fort Myers (Florida), and Honolulu will soon benefit from this faster delivery option. Currently, Target offers next-day delivery in about 35 major markets.

Target (TGT) reports that two-thirds of its digital orders are fulfilled on the same day, whether through drive-up, in-store pickup, or same-day delivery for Target Circle 360 members.

Chief Financial Officer James Lee shared, “Last year, our same-day services generated over $14 billion in sales, representing two-thirds of our total digital revenue. We’re investing to make these offerings even faster and more efficient. We already provide quick, cost-effective fulfillment and continue to improve our operations, managing all essential aspects of digital order processing ourselves.”

Additionally, Target’s third-party marketplace, Target Plus, experienced growth exceeding 30%.

How Next-Day Delivery Works

Customers can enjoy free next-day delivery on orders above $35, or with no minimum if they are Target Circle 360 members or use a Target credit card. Most products available for shipping, including 85% of items sold in stores, qualify for this expedited service.

Target’s logistics approach uses retail locations as fulfillment hubs, which the company says boosts efficiency and reduces costs. Depending on the area, packages are collected from local stores and sent to one of 11 sortation centers, where they are organized and routed for delivery by Shipt (Target’s delivery arm) or other carriers. Each sortation center typically serves 30 to 40 nearby stores, with assignments based on inventory, staffing, available space, and cost considerations.

By moving sorting and packing out of certain store backrooms, Target frees up time and space for staff to handle more orders and assist shoppers. The advanced technology at sortation centers also pre-arranges packages for easy pickup, streamlining the process for delivery partners.

“Some stores are well-suited for fulfillment due to their large backrooms and capacity, while others are not involved in shipping,” explained Michael Fiddelke, who became CEO on February 1. “Simplifying tasks for store teams enhances the customer experience. In some cases, we want staff to focus solely on in-store operations rather than shipping.”