In a strategic move to enhance customer convenience and bolster its competitive edge, Target is significantly expanding its same-day delivery service. This expansion is not merely a tweak to existing operations; it represents a substantial investment in meeting the evolving demands of today's fast-paced consumer landscape. The company's commitment to providing quick and reliable delivery options places it squarely in direct competition with industry giants like Amazon and Walmart.
The expansion plan will extend same-day delivery services to an additional 35 metropolitan areas across the United States. This strategic rollout will bring the total number of cities served to a considerable figure, dramatically increasing Target's reach and accessibility. The move is a clear signal that Target is committed to providing a seamless shopping experience, irrespective of location. This allows customers to receive their desired merchandise even more quickly, enhancing overall satisfaction and loyalty.
Specifically, the expansion aims to cover at least 35 of the top 60 metropolitan areas in the United States. This represents a substantial portion of the country's population centers, where demand for rapid delivery is particularly high. By focusing on these key urban areas, Target maximizes the impact of its investment and ensures that a significant number of potential customers benefit from the enhanced service.
This translates to bringing the convenience of same-day delivery to 22 entirely new cities, allowing a broader customer base to experience the benefits of swift and reliable service. This expansion solidifies Target's position as a major player in the retail landscape, directly challenging the dominance of competitors who have already established themselves in the same-day delivery arena.
According to Gretchen McCarthy, Target's Chief Supply Chain and Logistics Officer, this expansion is poised to have a significant impact on the company's reach. By the end of the year, approximately 54% of the entire US population will have access to next-day delivery services. This is a considerable leap from the previous coverage of just 20%, highlighting Target's dedication to enhancing its supply chain capabilities.
McCarthy further elaborated that Target intends to leverage its fulfillment centers extensively to streamline shipping speeds without compromising profitability. This approach reflects a strategic focus on optimizing operational efficiency and ensuring that the expansion does not negatively impact the company's bottom line. By relying on its existing infrastructure, Target aims to provide faster delivery without incurring excessive costs.
McCarthy articulates Target's strategic shift towards a market-based fulfillment model, transitioning away from a purely national approach. This localized strategy enables Target to better cater to the specific needs and demands of individual markets, ensuring a more tailored and responsive service. This move allows Target to be more agile and adaptive in meeting customer expectations.
A key example of this market-based approach is the focus on Southern California, particularly the Los Angeles area. With approximately 80 Target stores, two fulfillment centers, and two sortation centers, Southern California serves as a vital hub for Target's operations. This dense network of resources allows for efficient order processing and delivery, making it an ideal region for implementing and refining the same-day delivery service.
Several prominent cities, including San Diego, Orlando, and Tampa, are among the 35 metropolitan areas included in the initial expansion phase. Looking ahead, Target plans to add another 20 metropolitan areas to the list by 2026, further extending its reach and solidifying its commitment to providing comprehensive same-day delivery coverage across the United States.
Target already provides same-day delivery to 80% of the country through Shipt, the delivery subscription service it acquired in 2017 for a hefty $550 million. This acquisition has proven to be a strategic asset, enabling Target to tap into an established delivery network and infrastructure. Shipt plays a crucial role in facilitating same-day deliveries, providing a reliable and efficient solution for meeting customer demands.
In the same year as the Shipt acquisition, Target initiated a transformative initiative to convert many of its over 1,900 stores into dual-purpose fulfillment centers. This strategic move allows Target to leverage its existing brick-and-mortar footprint to support its online operations, enhancing its ability to fulfill orders quickly and efficiently. This integration of physical and digital channels strengthens Target's overall supply chain capabilities.
Target will continue to rely on Shipt to fulfill larger batch orders for delivery in the newly expanded metropolitan areas, ensuring a seamless transition and consistent service quality. However, Target is also forging partnerships with national carriers to supplement Shipt's capabilities and ensure comprehensive coverage. This hybrid approach allows Target to balance its reliance on Shipt with the need for scalable and flexible delivery solutions.
Despite Target's efforts, Amazon remains the dominant force in the same-day delivery landscape. Amazon expanded its same-day delivery service by over 60% last year for Prime members, now serving more than 140 metropolitan areas. Amazon's extensive infrastructure and vast customer base give it a significant advantage in the competitive arena of rapid delivery.
Walmart is also a formidable competitor, having delivered approximately 7.1 billion units through same-day or next-day delivery services in the past year. Walmart's expansive network of stores and distribution centers enables it to provide fast and convenient delivery options to a wide range of customers.
In August, Walmart confirmed its expansion of next-day delivery through Walmart Marketplace, its third-party platform, in Atlanta, Chicago, Houston, and Los Angeles. This move allows Walmart to leverage its existing infrastructure to support third-party sellers, further enhancing its delivery capabilities and expanding its product offerings.
According to Walmart, at least 95% of the US population is within reach of its next-day or two-day shipping services. This extensive coverage highlights Walmart's commitment to providing convenient and reliable delivery options to customers across the country.
Beyond delivery services, Target has also updated its return policy to ensure fairness and prevent abuse. Target reserves the right to deny returns, refunds, and exchanges in cases of suspected fraud or abuse. This measure is designed to protect the company from fraudulent activity and maintain the integrity of its return process.
For most items sold by Target, customers can return unopened and new condition items within 90 days for a refund or exchange. The return period for online purchases from Target.com begins when the order is invoiced, which occurs when any part of the order is shipped, delivered by a Shipt shopper, or made ready for pickup. This policy provides customers with a reasonable timeframe to return items that do not meet their expectations.
Certain items may have different return policies, which are clearly indicated on the receipt, packing slip, Target's policy board (refund exceptions), Target.com, or within the item's description. This transparency ensures that customers are aware of any specific return restrictions or limitations before making a purchase.
Refunds or exchanges may be refused for items that are opened, damaged, or lack a receipt. This policy is in place to prevent the return of items that are no longer in resalable condition or cannot be verified as having been purchased from Target.
The expansion of Target's same-day delivery service follows a period of challenges, including sluggish sales and customer dissatisfaction. By investing in enhanced delivery options, Target aims to reinvigorate its business and regain customer loyalty. This strategic move is part of a broader effort to address the company's recent struggles and position itself for future growth.
Recently, Target confirmed the appointment of Michael Fiddelke as its new CEO, succeeding Brian Cornell in February 2026. Fiddelke has pledged to implement significant changes at Target in the coming year, as the retailer seeks to overcome stagnant sales and improve its competitive standing.