News Summary
Target has introduced its next-day delivery service in San Diego, expanding its logistics strategy to compete with Amazon and Walmart. Starting immediately, customers can receive eligible orders placed by 3 p.m. the next day, with free delivery on orders over $35. This move increases Target’s delivery coverage to 54% of the U.S. population. The company aims to enhance operational efficiency and has planned further expansions to 30 to 40 markets. Despite financial challenges and leadership changes, Target is committed to blending digital and physical operations.
San Diego Welcomes Target’s Next-Day Delivery Service
Target has announced the launch of its next-day delivery service in San Diego, marking a significant expansion of its logistics capabilities. This initiative is part of Target’s strategy to enhance its delivery options amidst increasing competition from industry giants such as Amazon and Walmart. The next-day delivery service will commence immediately, with orders for eligible items needing to be placed by 3 p.m. to qualify for next-day arrival.
The rollout is expected to reach 35 of the largest 60 metropolitan markets in the U.S. by the end of October 2023, with San Diego, Orlando, and Tampa being among the most recent cities to receive this service. Along with the introduction of next-day delivery, customers in San Diego will benefit from free delivery on orders exceeding $35, while Target Circle Card holders or Target Circle 360 members can enjoy this service with no minimum order requirement.
Expanding Coverage and Competing Effectively
With this expansion, Target aims to increase its delivery coverage to 54% of the U.S. population, improving significantly from its previous reach of 20%. Target’s capabilities also include same-day delivery options available to over 80% of the U.S. population through Shipt, a delivery subscription service acquired by Target in 2017.
The competitive landscape in the delivery market has intensified, with Amazon recently expanding its own same-day delivery services by more than 60% for Prime members, serving over 140 metro areas. Walmart has also made strides, reporting the delivery of 7.1 billion units through same-day or next-day delivery in the past year, reaching 95% of the U.S. population with its shipping options.
Logistics Strategy and Future Plans
Target’s chief supply chain and logistics officer indicated that the company is transitioning from a national fulfillment model to a market-based approach aimed at enhancing operational efficiency. The current strategy utilizes 11 sortation centers, which process batch orders for delivery through Shipt or third-party carriers. A successful pilot program in Chicago was initiated to localize shipping demand and consolidate fulfillment operations, resulting in increased shipping speed and reduced costs.
Target intends to apply elements of this strategy to an additional 30 to 40 markets, including regions designated for next-day delivery. Despite the logistical enhancements, Target is facing challenges with sales, having reported a 21% decline in net income as of August, alongside stagnant or decreasing comparable sales in eight of the last ten quarters.
Corporate Leadership Changes and Store Strategy
In light of its ongoing financial struggles, Target is also undergoing significant leadership changes. Michael Fiddelke, the current Chief Operating Officer, will succeed CEO Brian Cornell on February 1, 2026. This transition aims to revitalize the company and address the challenges it currently faces.
Further solidifying its commitment to blending digital and physical operations, Target has more than 1,900 physical stores that will support its delivery endeavors. In the fall of 2023, Target plans to open seven new stores across various states, focusing on larger store formats that function as both retail destinations and fulfillment centers. Despite the financial unrest, digital sales have seen modest growth at 4.3% due in part to the enhanced same-day services available to customers.
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Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
