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Target Invests 100M in Hubs to Speed Up Delivery; Gretchen McCarthy Comments

Target Invests 100M in Hubs to Speed Up Delivery; Gretchen McCarthy Comments

Tuesday, February 28th, 2023

An investment of $100 million is enough to spark pivotal growth for nearly any operation, especially one as popular as grocery delivery. As the convenient shopping method continues to gain traction among shoppers, Target is funneling a hefty investment into the expansion of its network of supply chain hubs.

Gretchen McCarthy, Chief Global Supply Chain and Logistics Officer, Target“We are absolutely tracking consumer spending closely. We’re taking recent trends into account,” commented Gretchen McCarthy, the Chief Global Supply Chain and Logistics Officer of Target.

The retailer plans to have at least 15 sortation centers by the end of January 2026, according to CNBC. Target has already opened nine of these facilities following tests in Minneapolis, Minnesota, establishing centers across major markets in Minnesota, Texas, Colorado, Illinois, Georgia, and Pennsylvania. Last month, the retailer opened sortation centers in the Chicago, IL, and Denver, CO, areas as well.

In the coming year, Target expects to deliver 50 million packages through the sortation centers, a large increase from the 26 million packages delivered in 2022.

To continue speeding up its delivery process while minimizing costs, Target announced an investment of $100 million to expand its network of supply chain hubs

Target has leaned heavily into a strategy of “stores as hubs,” over the past six years, the source noted. By optimizing this strategy and business model, the retailer has reportedly saved “tens of millions of dollars in last-mile expense,” and cleared space in its backrooms while freeing up time for store employees to assist customers.

The grocer is sure to make more moves to strengthen its delivery and e-commerce operations, and DMN will be here with the latest updates.