THE SUPPLY CHAIN INTERVIEW
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s consumer expectations for delivery speed continue to grow, Target is rewriting the playbook on retail fulfilment. The Minneapolis-headquartered giant, which operates almost 2,000 stores across the US, has embarked on a sophisticated supply chain transformation that promises to increase speed for customers while simultaneously reducing costs – a rare combination in today’ s competitive landscape.
At the helm of this evolution is Gretchen McCarthy, Executive Vice President and Chief Supply Chain and Logistics Officer, who oversees Target’ s global supply chain and logistics network. Having spent almost two decades at the company and with leadership experience spanning various continents, Gretchen is orchestrating a nuanced strategy that treats each store and distribution facility as a unique asset – rather than a one-size-fits-all fulfilment node.
Next-day delivery expansion Target’ s latest milestone is the expansion of next-day delivery to 35 top US metropolitan areas – timed strategically for the critical holiday shopping season.
The rollout represents more than just a service upgrade. Instead, it is the visible outcome of years of infrastructure investment and operational refinement. By next year, the company plans to extend next-day delivery to more than 20 additional metro areas, progressively covering more of its customer base.
“ Speed matters more than ever to consumers, so we’ ve prioritised expanding faster delivery across the country,” Gretchen explains.“ This past quarter, we delivered over two million more packages the next day than we did this time last year.”
The expansion sits within a broader ecosystem of convenience options that has become Target’ s competitive differentiator. Today, at least 80 % of the US population can access same-day delivery( free for Target Circle 360 members), while 99 % can receive items within two days.
Nearly all Target stores offer same-day Order Pickup and Drive Up services, which are always free and available on customers’ timelines.
The stores-as-hubs evolution What distinguishes Target’ s approach from competitors is its very deliberate stores-as-hubs model, which positions physical locations as mini fulfilment centres.
Gretchen is keen to emphasise that this strategy is evolving with increasing precision.
“ This year we’ ve introduced a new strategy that evaluates every store and supply chain facility at a granular level to ensure each one is focused on the work they do best within fulfilment,” she reveals.
“ We’ re refining how we use our buildings so we can deliver as fast and cost effectively as possible while reducing complexity for stores where needed.”
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