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The goal logo is displayed on the smartphone screen.
Sheldon Cooper | SOPA Pictures | Light Rocket | Getty Images
Goal It has a new way of expediting packages for customers who live in suburbs and remote neighborhoods in big cities, as it tries to give the e-commerce business a jolt.
The large retailer said Wednesday that it is testing an additional facility that helps it get online orders to more shoppers the day after they click “buy.” The first one opened last month in Smyrna, Georgia, about 16 miles northwest of Atlanta, and it may open in other cities.
Drivers from Target-owned delivery service Shipt pick up packages from the courier facility and deliver them to customers’ doors. Drivers are independent contractors, similar to those who deliver Uber.
The extension facility is part of Target’s efforts to offer next-day delivery to more customers. Early this year, it said it would spend $100 million over the next three years to build a larger network of supply chain hubs to support the effort.
More than 96% of the company’s online orders are fulfilled in stores. The retailer has opened supply chain facilities, dubbed “sorting centres,” which then help bundle those boxes into denser, more efficient delivery routes. It has opened nine facilities and plans to have at least 15 facilities by the end of January 2026.
An extension attachment adds to this model and widens the radius for faster delivery.
Target did not disclose the price for the extension center, but a spokesperson said it is not part of the planned $100 million in supply chain investments. Target said the extension facility will bring next-day delivery within reach of an additional 500,000 customers near Atlanta. It can now offer next-day delivery to a total of three million people in the Atlanta area.
Target’s push to deliver faster and more profitable online orders comes as e-commerce sales shrink and shoppers back away from discretionary purchases. In the most recent quarter, which ended April 29, Target’s digital sales fell 3.4% year-over-year, reversing the downward trend seen in CostcoAnd best buy, kohl and others. of its competitors, Walmartbucking the trend as online sales jumped 27% year-over-year in the US in the first quarter of the fiscal year.
Additionally, in recent weeks, several analysts have downgraded Target’s stock, saying its sales may have peaked during the Covid-19 pandemic. They cited a tougher background selling clothes and items other than food or necessities. These challenges added to Target’s recall for including and later removing certain LGBTQ+ merchandise from its Pride Collection.
The company’s shares are down about 11% this year, paring 14% gains for the S&P 500. Its stock closed at $132.72 on Tuesday, down nearly 30% from its 52-week high.
On a call with reporters in May, Target CEO Brian Cornell said customers were still shopping online. However, he added, many items shipped directly to customers’ homes are discretionary items — and those sales have slowed.
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