THE SUPPLY CHAIN INTERVIEW
“ WE’ VE INTRODUCED A NEW STRATEGY THAT EVALUATES EVERY STORE AND SUPPLY CHAIN FACILITY AT A GRANULAR LEVEL”
Gretchen McCarthy, Chief Supply Chain and Logistics Officer, Target
The strategy acknowledges a fundamental truth: not all stores are created equal and forcing uniformity can compromise operational efficiency and customer experience.
It is an approach that considers multiple variables: store size, backroom capacity, foot traffic patterns, proximity to other fulfilment assets and seasonal demand fluctuations. A store near a university campus, for example, might reduce shipping operations during the back-to-college rush to protect the in-store experience when foot traffic peaks. Conversely, stores with larger backrooms and lower walk-in traffic can concentrate more shipping volume.
“ For some stores, this will mean taking on more shipping volume; for other stores, it will mean less or none,” Gretchen notes.“ We’ ll also shift volume from certain stores to nearby fulfilment centres.”
Crucially, stores with reduced shipping responsibilities can reinvest that capacity into enhancing the walk-in guest experience or accelerating same-day services like Drive Up and Order Pickup.
Technology drives intelligent routing Behind Target’ s expanding delivery capabilities lies sophisticated technology that makes split-second decisions about order fulfilment. Real-time signals – including inventory locations, staffing levels and cost structures – guide the system in assigning each order to the optimal building.
28 November 2025