Target Expands Next-Day Delivery to 20 More Cities, Covering 60% of U.S.
Target is expanding next-day delivery to 20 more cities this spring, raising coverage to over 50 metropolitan areas and 60% of the U.S. population through a $2 billion investment in stores and operations. The broader fulfillment footprint and sortation center network aim to boost digital sales growth and drive operational efficiency.
1. Next-Day Delivery Expansion
Target is rolling out next-day delivery to 20 additional metropolitan areas this spring, boosting its footprint to more than 50 cities and reaching 60% of the U.S. population. New markets include Birmingham, AL; Santa Barbara, CA; Fort Myers, FL; and Honolulu, HI.
2. Infrastructure Investments
The expansion is part of a $2 billion incremental investment in stores and operations for 2026, transforming existing stores into mini-fulfillment centers and enhancing backroom capacity. These upgrades support faster order processing and increased order volume.
3. Fulfillment Network and Logistics
Under the logistics model, 30 to 40 local stores feed each of 11 sortation centers where orders are batched and routed. Delivery partners Shipt and third-party carriers then handle final-mile delivery, optimizing cost-to-serve and staffing efficiency.
4. Impact on Digital Sales and Efficiency
Same-day services generated over $14 billion in sales last year and account for two-thirds of digital revenue. Target Plus, the company’s third-party marketplace, saw more than 30% growth, with the expanded network expected to further accelerate digital sales and profitability.