Target is testing a new sortation center model built entirely around Shipt, its same-day delivery subsidiary, as it looks to speed up next-day fulfilment in the Cleveland metro area.
The retailer has opened a 40,000-sq.-ft. facility in time for the holiday season as part of a three-year pilot.
Unlike Target’s existing sortation centers, which handle online order sorting and hand off parcels to Shipt, national carriers and other third-party partners, this site activates all last-mile delivery exclusively through Shipt.
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Target first introduced sortation centers in 2021 with a pilot in Minneapolis, aiming to shift labor-intensive backroom sorting out of stores and into dedicated hubs.
The Cleveland test is designed to determine whether a Shipt-only model is viable at scale.
To accelerate the launch, Target tapped Ryder, a long-standing third-party partner, to operate the building. Two Target team members will be stationed on site, working alongside Ryder staff and Shipt drivers.
The pilot will run over multiple years as Target evaluates performance, speed and potential expansion of the model.
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