Target is piloting a new delivery method that utilizes Shipt drivers to transport standard shipments from stores to customers in areas without access to a sortation center.
The initiative, highlighted by Michael Fiddelke, executive vice president and chief operating officer, was discussed during the retailer’s fourth-quarter earnings call this month.
The test focuses on what Target refers to as ‘brown box delivery’ which extends beyond the company’s existing same-day delivery and pickup services.
While specific locations and the number of participating stores were not disclosed, Fiddelke noted that early results have been promising.
“While we’re in the early stages of expanding this test to more markets, we’re very encouraged by the early results as it’s making us faster and more cost efficient,” he said.
This move further integrates Shipt into Target’s fulfillment network, reinforcing the company’s stores-as-hubs strategy, in which physical locations act as fulfillment centers for online orders.
In addition to facilitating same-day delivery and transporting packages from sortation centers to customers, Shipt drivers will now pick up pre-packaged shipments from designated store locations and deliver them via optimized routes.
According to Fiddelke, Target has made significant progress in speeding up deliveries.
In 2024, the company nearly doubled the number of packages delivered within a day compared to the previous year while also reducing average delivery times by over 11%.
“We know speed matters to our guests and that with increased speed comes more sales,” he added.
In markets where sortation centers are available, Target has also begun leveraging Shipt drivers with larger vehicles to increase efficiency.
Meanwhile, the brown box delivery test is expected to further streamline operations, reducing costs and accelerating fulfillment in regions without dedicated sorting facilities.
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