Target is scaling its next-day delivery capabilities by expanding a direct-from-store shipping model powered by its Shipt subsidiary.
The service, known as Target Last Mile Delivery Direct, will be available in more than 100 stores across 50 markets by the end of 2026, up from just six stores in two markets a year ago, according to Shipt CEO Kamau Witherspoon.
By fulfilling orders from stores closer to customers, Target aims to reduce delivery times and remove inefficiencies tied to traditional parcel networks. The approach is also delivering cost savings, with Shipt-based deliveries estimated to reduce fulfilment costs by around $2.50 per package compared to national carriers.
The expansion builds on earlier pilots of “brown box” delivery, shipments beyond same-day services, which demonstrated both speed and cost advantages.
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Target is combining multiple fulfilment methods, including store-based shipping, sortation centres and carrier networks, to optimise last-mile operations. Senior VP Daryl Glass said the company is prioritising markets where demand is high or where sortation infrastructure is limited.
Next-day delivery coverage for standard shipments currently reaches about 50% of the U.S. population and is expected to exceed 60% by the end of spring as the retailer adds 20 new metro areas.
Not all stores will serve as fulfilment hubs. Target is concentrating volume in specific locations while scaling back fulfilment activity in others, based on factors such as inventory alignment, staffing capacity and local demand.
A pilot in Chicago showed the strategy could increase next-day delivery availability fivefold in certain markets.
The move underscores Target’s broader push to turn its store network into a competitive advantage in last-mile logistics, balancing speed, cost efficiency and operational complexity as it scales its omnichannel capabilities.
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