Target will spend $100M to boost its delivery network.
The firm aims to improve deliveries as it increases its bet on the future of e-commerce.
- Target said on Wednesday that it will dedicate $100M to develop a larger network of supply chain hubs called "sortation centers."
- The firm has already opened nine sortation centers and plans to boost this number to at least 15 by 2026.
- The company's historical use of its physical stores as delivery hubs resulted in storage space shortages as its e-commerce business grew.
- Target continues to struggle with unwanted inventory and an ongoing pullback in e-commerce spending among American consumers.
- The company delivered 26 million packages through its sortation centers in 2022 and aims to increase this to 50 million in the coming year.
