Target Introduces New Delivery Hubs as It Chases Bigger e-Commerce Profits
Each day, hundreds of drivers park at a delivery hub in Target’s hometown and load up the trunks of their personal cars with packages to deliver to customers.
Soon, the big-box retailer will have similar centers and gig workers in three more places − two in the Greater Chicago area and one near Denver − to get online orders to doors quicker and at a lower cost. The new centers are part of growing push among retailers including Walmart to make e-commerce more profitable as shoppers spend online and expect purchases to get to their doors within a day or even hours.
Since it began testing at the Minneapolis facility in late 2020, Target has added five similar hubs where ready-to-go packages are sorted and grouped together to create dense delivery routes. The three more are slated to open by the end of January.
