Target Opens Extension Facility to Expand Last-Mile Reach
Target is expanding its reach for next-day delivery by introducing the Target Last Mile Delivery (TLMD) extension, a new addition to its supply chain facilities. The TLMD extension acts as a bridge, extending the delivery range of the sortation center to customers outside its usual radius. Pre-sorted packages are transferred from the sortation center to the TLMD extension, where they are prepared for pickup and next-day delivery by drivers on the Shipt platform, reaching additional neighborhoods.
"TLMD extensions represent the latest milestone in our journey to deliver a best-in-class experience for our guests — however they choose to shop with us," said John Mulligan, Executive Vice President and Chief Operations Officer, Target. "These facilities are a continuation of our innovative efforts to serve millions of guests and reach millions more, while maximizing speed, efficiency and care across our real estate portfolio."
The first TLMD extension has recently opened near Target's store in Smyrna, Georgia, and it has proven to be highly cost-effective compared to a full-size sortation center. So far, it has already increased Target's capacity to serve customers by more than 30%. This expansion enables next-day delivery to be accessible to an additional 500,000 customers, bringing the total number of people served in the Atlanta market to over 3 million.
The TLMD extension aligns with Target's strategy of utilizing its stores as central hubs for fulfilling online orders, strategically leveraging their existing real estate footprint to meet the demands of an expanding customer base. These stores serve as exceptional shopping destinations, where orders are packaged and shipped to the expanding network of sortation centers for next-day delivery through Shipt. Throughout this process, Target's exceptional team plays a crucial role.
"Our guests have come to rely on the convenience and ease of our same-day and next-day delivery capabilities thanks to our stores-as-hubs model," said Gretchen McCarthy, Executive Vice President and Global Supply Chain and Logistics Officer. "Now with the power of our team and drivers with Shipt, our latest Target Last Mile Delivery investments allow us to expand our next-day delivery offerings to thousands more guests in the greater Atlanta area and bring even more joy to the guest experience."
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