Target Expands Next-Day Delivery to 35 Major US Metro Areas Ahead of Holiday Season

Target Expands Next-Day Delivery to Compete with Amazon and Walmart

Target is expanding its next-day delivery service to 35 major U.S. metropolitan areas by the end of October, aiming to better compete with rivals like Amazon and Walmart. This expansion will cover more than half of the U.S. population and represents a significant increase from its previous reach of just 20%.

Expansion Details and Timeline

The faster delivery option will be available in markets including Cleveland, Orlando, Florida, Pittsburgh, San Diego, California, Tampa, Florida, Kansas City, Missouri, St. Louis, Missouri, Charlotte, North Carolina, and Durham, North Carolina by the end of October, just ahead of the busy holiday shopping season. Target plans to further expand next-day delivery to more than 20 additional areas in 2026, including Cincinnati, Salt Lake City and Portland, Oregon.

Delivery Costs and Eligibility

Next-day delivery is free for orders over $35, or with no minimum order amount for Target Circle 360 members or those using a Target Circle Card for purchases. Most items eligible for shipping are eligible for next-day delivery, covering approximately 85% of goods sold in physical stores. The aim is to make shopping "as fast and seamless as possible," according to the company.

Competitive Landscape

The move comes as other major retailers also bolster their delivery options. Amazon delivered over 9 billion items the same day or next day in 2024 and offers same-day delivery to 140 metro areas. Walmart reports reaching 95% of the U.S. population with same-day or next-day delivery, delivering 7.1 billion packages last year. In August, Walmart announced it was expanding next-day delivery services across cities including Los Angeles, New York, Chicago, Houston and Atlanta.

Target's Logistics Model

Target uses its stores as mini-fulfillment centers to enhance efficiency and lower costs. Packages are retrieved from local stores and brought to one of 11 sortation centers for sorting, batching, and routing for delivery to local neighborhoods through Shipt, its delivery subsidiary, or third-party carriers. Orders are assigned based on inventory, staffing, backroom size, and cost-to-serve.

Strategic Rationale and Financial Context

According to Gretchen McCarthy, executive vice president and chief supply chain & logistics officer at Target, expanding next-day delivery to areas with high demand allows for cost-effective operations. This move is critical as Target aims to revitalize its business, which reported a 21% drop in net income for the quarter ended August 2nd. The company is focusing on a more market-based approach and efficiently utilizing its stores and fulfillment centers to enhance delivery speed without impacting profitability. As the retailer announced in August, Michael Fiddelke, current COO, will succeed Brian Cornell as CEO in February 2026.