Target widens next-day delivery network in race with Amazon and Walmart

Target is rolling out a major expansion of its next-day delivery service, a move aimed at strengthening its position against Amazon and Walmart.

The retailer said Monday that the offering will extend to 35 metropolitan areas by the end of October, ultimately covering more than half of Americans.

By next year, more than 20 additional cities will be added, according to the announcement.

Until now, next-day shipping had been far more limited. Gretchen McCarthy, Target’s chief supply chain and logistics officer, told the Associated Press that the service had previously reached only 20% of the U.S. population.

The AP noted San Diego, Orlando and Tampa are among the new cities included.

Target already provides same-day delivery to over 80% of U.S. households and two-day shipping to 99%.

The push comes as rivals accelerate their own delivery investments. Amazon revealed in February that it had increased same-day delivery facilities for Prime members by more than 60%, now serving upwards of 140 metro areas.

Walmart, meanwhile, told the AP it shipped 7.1 billion items using same- or next-day delivery in the past year and can now reach 95% of the country with either next- or two-day shipping.

In August, Walmart also announced it was expanding next-day delivery to Los Angeles, New York, Chicago, Houston and Atlanta.

Target’s logistics growth follows a challenging period marked by political controversy. I

n 2023, the retailer scaled back its Pride merchandise after what it described as “threats impacting our team members’ sense of safety and well-being while at work,” adding that it would be “removing items that have been at the center of the most significant confrontational behavior.”

Earlier this year, Target was again criticised when it moved to wind down certain diversity and inclusion programmes as companies nationwide faced pressure over DEI initiatives.

Leadership changes are also under way. Michael Fiddelke, a 20-year veteran of the company and its current chief operating officer, will take over from Brian Cornell as CEO in February.

“I am eager to refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience,” Fiddelke said in a statement.

“And to be clear, we have work to do to reach our full potential. Now’s the time to take full advantage of our strengths, embrace change with pace and purpose, and regain our momentum.”

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