Target Revamps Online Strategy Amid Store Operational Challenges
Target Corporation (TGT) is overhauling its e-commerce fulfillment model after customer complaints about deteriorating in-store conditions. The retailer will now limit ship-from-store operations to select locations, reversing its 2017 strategy of using all stores as mini-distribution centers.
Early tests in Chicago showed promising results—stores relieved of packing duties saw cleaner aisles and improved inventory availability. Next-day delivery cutoffs extended by six hours in the pilot market, suggesting operational efficiencies gained through specialization.
The shift comes as Target's digital sales growth—from $6.6 billion in 2020 to a projected $21 billion in 2025—created unsustainable complexity for store teams juggling both retail and logistics functions. By concentrating fulfillment in designated hubs, the company aims to restore its reputation for pristine stores while maintaining e-commerce momentum.
