Target chases bigger e-commerce profits with new delivery hubs, fleet of drivers

    Target chases bigger e-commerce profits with new delivery hubs, fleet of drivers

    Target is opening three more sortation centers to cut delivery costs and get online purchases to customers faster.

    Target is opening three more sortation centers to cut delivery costs and get online purchases to customers faster.

    At the hubs, the retailer groups packages heading to similar destinations and uses contractors to deliver them locally.
    The company opened the first sortation center in its hometown of Minneapolis and will soon have nine of them — with plans for more expansion across the country.

    Each day, hundreds of drivers park at a delivery hub in Target's hometown and load up the trunks of their personal cars with packages to deliver to customers.

    Soon, the big-box retailer will have similar centers and gig workers in three more places − two in the Greater Chicago area and one near Denver − to get online orders to doors quicker and at a lower cost. The new centers are part of growing push among retailers including Walmart to make e-commerce more profitable as shoppers spend online and expect purchases to get to their doors within a day or even hours.

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