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Axios reports that "Target is looking to get online orders to customers faster by expanding next-day delivery across the country," and plans to "invest $100 million to scale its supply chain sortation center network by opening six additional centers by the end of 2026.

"Target currently has nine centers in Minnesota, Texas, Colorado, Illinois, Georgia and Pennsylvania with centers in Chicago and Denver recently opening, the retailer said.

Target said the expansion of its network 'provides a fast, efficient, reliable and low-cost delivery option for our business, benefiting both our guests and the bottom line'."

According to the story, "Target said markets that have a sortation center will 'retrieve packages daily from a range of 30 to 40 local stores, depending on the market.'  The packages are brought to the sortation center to sort, batch and route for delivery to local neighborhoods by a third-party carrier or Shipt delivery route, depending on the lowest-cost carrier option, Target said."

Target expects "to deliver 50 million packages through the sortation centers in 2023, which is double its 2022 numbers.  Up to 40% of Target last-mile delivery orders with Shipt are currently delivered by the next day."

KC's View:

Those who think that with the pandemic largely in the rear view mirror, the bloom is off the e-commerce rose and things like next day delivery will be less important, are largely mistaken.  At least, I think so … and believe that this will end up being a smart investment by Target.