Target said Wednesday it will spend $100 million to build a larger network of supply chain hubs to speed up and lower the cost of delivering online orders.
The retailer plans to have at least 15 of the facilities, dubbed sortation centers, by the end of January 2026. It already has opened nine, after testing the concept in its hometown of Minneapolis. The expansion will also grow Target’s workforce. On average, more than 100 people work at each sortation center.
The company is betting on e-commerce growth, despite struggling with a glut of inventory and a noticeable pullback in sales. Target lowered its holiday-quarter outlook and announced plans to cut up to $3 billion in costs over the next three years. It will report fiscal fourth-quarter earnings and its full-year expectations on Tuesday.CNBC