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Target is expanding its shipping options this year by using drivers from its Shipt subsidiary to deliver orders the next day directly from its stores to customers’ homes, taking aim at competitors like Amazon.
The retailer plans to roll out a service called Target Last Mile Delivery Direct, which uses Shipt drivers to deliver online orders directly from nearby stores to customers’ homes as soon as the next day. By the end of 2026, more than 100 stores across 50 U.S. markets are expected to support the program, a sharp increase from just six stores in two markets a year earlier.
By handling fulfillment at stores closer to customers, Target can cut out some of the usual shipping delays and reduce costs, Shipt CEO Kamau Witherspoon said, Supply Chain Dive reports. Using Shipt for deliveries brings down Target’s cost per package by about $2.50 compared to national shipping carriers.
Target already reaches about half of the U.S. population with next-day brown box shipments and expects that coverage to surpass 60 percent as 20 more metro areas come online this spring, according to Daryl Glass, Target’s senior vice president of fulfillment and Last Mile, the outlet reports.
Not all Target stores will be used for next-day delivery fulfillment. Instead, the company is focusing on order volume at select locations while scaling back fulfillment work at other stores. The strategy was first tested in a pilot program in Chicago last year, where Target said it was able to offer next-day delivery for five times more local orders, showing a significant boost in capacity and efficiency.
Target decides which stores handle more online order volume, and which handle less, based on several operational factors, according to Glass. A key part of the decision is making sure each store has the right inventory to match expected fulfillment demand.
The company also needs to ensure stores have enough time to ramp up staffing and properly train employees to manage online order picking and shipping efficiently.
Target’s competitors, especially Amazon, have made fast delivery a core part of their strategy for years. Amazon built a vast fulfillment network designed to keep inventory close to customers, enabling rapid shipping through its core marketplace and Amazon Prime. Over time, it has expanded next-day and same-day delivery in many cities by investing in regional fulfillment centers, automation, and a large last-mile delivery system that relies on both Amazon drivers and third-party carriers.
Walmart has taken a different approach, using both its large store network and distribution centers to power fast delivery. Instead of relying only on centralized warehouses, it uses thousands of stores as local fulfillment hubs to support online orders. Through Walmart+, the company has expanded next-day and same-day delivery in many markets, especially for groceries and everyday essentials.
