Target Opens New Sortation Center In Detroit
Target is augmenting its supply chain footprint with the opening of its 11th sortation center, with its newest location in Detroit.
The new facility at 20250 Woodward Avenue will bring Target’s next-day delivery offering to more than three million consumers across the Motor City region. According to the retailer, the new sortation center is part of Target’s larger stores-as-hubs strategy, which enables the retailer to fulfill online orders from local stores.
The facility will retrieve packages daily from 30 to 40 local stores, then sort, batch, and route them for delivery to local neighborhoods – either by a local delivery driver or a third-party carrier. Up to 90% of items ordered on Target.com before noon will be delivered the next day, the retailer said.
The sortation centers are designed to remove the sorting and packaging process for store backrooms, which Target said saves time and space. Additionally, technology at the sorting centers is designed to presort and arrange packages for easy pickup. With Target stores now fulfilling the bulk of online orders, the sortation centers have made this process easier, Target said.
In addition to the new Detroit location, Target has 10 sortation centers in Minnesota, Texas, Colorado, Illinois, Georgia, Florida, and Pennsylvania. Since the start of its sortation center operations, these facilities have helped to increase the number of orders delivered to guests the next day by more than 150%.
The retailer in the coming years will spend between $3.5 billion and $5.5 billion per year to deepen capabilities across the business, including its supply chain network. In early 2024, Target announced plans to open 300 new stores in the next decade, and its supply chain will expand as well to meet that growth with several new facilities currently in the pipeline.
