Target to invest 100 million dollars in sortation centres

US department store retailer Target has announced it is planning to inject a 100 million dollar investment into scaling its sortation centre network.

Through the funding, the company is hoping to open six additional facilities by the end of 2026, bringing its network to 15.

Currently, the retailer operates nine centres in Minnesota, Texas, Colorado, Illinois, Georgia and Pennsylvania, as well as Chicago and Denver, both of which it opened last month.

According to Target, the addition of these facilities have enabled it to increase the number of next-day deliveries by over 150 percent.

Next to this, the company has also been testing larger capacity vehicles, resulting in an expansion of its partnership with Shipt, through which it will provide drivers with the ability to take on larger routes in vans that can hold up to eight times more packages.

Currently, Target said it is testing the use of larger capacity vehicles to deliver orders at two of its sortation centres, with it planning to expand to all regions in the next few years.

In a release, the retailer noted that it is expecting its sortation centres to double their delivery capacity to more than 50 million packages in 2023.

It hopes the growth of its network will also support its store teams, allowing for more efficient in-store and online shopping.