Target Invests $100 Million in Hubs to Speed Up Delivery; Gretchen McCarthy Comments
MINNEAPOLIS, MN - We are well aware by now that many consumers have adopted grocery delivery as one of their primary shopping methods, and Target is making sure to appeal to this demand with the expansion of its network of supply chain hubs. To continue speeding up the delivery process while minimizing costs, the retailer announced a growth investment of $100 million.
“We are absolutely tracking consumer spending closely. We’re taking recent trends into account,” Gretchen McCarthy, Target’s Chief Global Supply Chain and Logistics Officer, said.
According to CNBC, the retailer plans to have at least 15 sortation centers by the end of January 2026. Target has already opened nine of these facilities following tests in Minneapolis, Minnesota, establishing centers across major markets in Minnesota, Texas, Colorado, Illinois, Georgia, and Pennsylvania. Last month, the retailer opened sortation centers in the Chicago, IL, and Denver, CO, areas as well.
In the coming year, Target expects to deliver 50 million packages through the sortation centers, a large increase from the 26 million packages delivered in 2022.
In the past six years, Target has leaned heavily into a strategy of “stores as hubs,” the source noted. By optimizing this strategy and business model, the retailer has reportedly saved “tens of millions of dollars in last-mile expense,” and cleared space in its backrooms while freeing up time for store employees to assist customers.
As the company continues to bet on its e-commerce growth, what strategies will Target implement next? Stay on the pages of ANUK to find out.