Target is Adding Three New Sortation Centers in Denver and Chicago to Deliver Even Faster for Guests
Target | July 25, 2022
At Target, they're always looking for new ways to make sure you have an incredible shopping experience. Target's latest move? Adding three new sortation centers in the next year — two in greater Chicago and one in the Denver metro — to power even speedier delivery for Target guests, while helping their teams work more efficiently and reducing shipping costs. Together with Target's six existing sortation centers across the country, these additions will mean an even better experience for even more guests now and in the years to come.
What’s so special about these facilities?
Sortation centers take orders packed in local stores and sort them quickly and efficiently for local deliveries. They are the next phase of Target's stores-as-hubs strategy, helping lower costs and creating efficiencies for operations while increasing speed of delivery for guests. That’s important given the digital sales have grown nearly $13 billion from 2019 to 2021, and Target stores fulfilled more than 95% of the total sales in 2021.
But rather than team members managing packing and sorting packages in a store’s backroom, sortation centers take on the sorting process, saving the store teams time and space so they can fulfill more orders and reach guests faster at a lower delivery cost for Target. Plus, sortation centers allow Target teams to easily scale to fulfill a growing number of orders, and consolidating orders and batching deliveries add ease for Target carriers. And they do it all while staying focused on serving their guests no matter how they choose to shop with Target.
Testing, learning and building new capabilities — with help from Shipt
Target is always testing and learning to make these sortation centers work even harder for Target and their guests. Take the Minneapolis sortation center. It was our first test-and-learn grounds, and now handles nearly two-thirds of Target’s digital orders in the area. They started out delivering several hundred packages per day, and now can deliver tens of thousands on their busiest days with the help of more than 2,000 Shipt drivers, who deliver packages in their personal vehicles. Packages are picked up from our 43 Twin Cities stores twice daily and sorted at the center for pickup by Shipt drivers and other carrier partners, who then deliver them to guests’ doors.
Now, they're going one step further, working with Shipt to pilot the use of large-capacity delivery vehicles in Minneapolis. The vehicles can hold up to eight times more packages per route, adding more flexibility to deliver even faster and make room for growing order sizes. And it’s just the start: They’ll continue to test and improve, with plans to scale in the years to come. It’s yet another way they're investing across operations to support Target teams, build on their strategy and deliver joy for guests.