Target is expanding its next-day delivery reach to stay competitive with Amazon and other rivals.
The Minneapolis-based company Tuesday announced plans to provide the faster service in 35 additional U.S. metro areas by the end of October. Some of the new locations include Charlotte, North Carolina; Cleveland; Kansas City, Missouri; Orlando, Florida; Pittsburgh; San Diego; St. Louis; and Tampa, Florida.
The company said it plans to add 20 more metro areas to its next-day delivery roster in 2026.
Target already provides same-delivery to 80% of the U.S. population, and two-day shipping to 99% of the country, according to the company. The retail chain also offers free store pickup and drive-up services for online purchases.
Amazon, by comparison, expanded its number of same-day delivery sites for Amazon Prime members by more than 60% in 2024, and serves more than 140 metro areas.
Walmart told AP News that it has delivered 7.1 billion units via same-day delivery or next-day delivery in the last 12 months, though it declined to offer the percentage. It also announced last month that it's expanding next-day delivery across top U.S. cities including Atlanta, Chicago, Houston and Los Angeles, for its third-party marketplace items to customers. Walmart said it reaches 95% of the U.S. population with next-day or two-day shipping.
Target's decision to extend its services for speedier deliveries comes at a critical time for the retailers, which operates more than 1,900 stores. In the quarter that ended on Aug. 2., it reported a 21% drop in net income. The company has also seen flat or declining comparable sales in eight out of the past 10 quarters.
In an effort to reenergize the company and turn around its weak sales, Target in August announced that its Chief Operating Officer Michael Fiddelke, a 20-year company veteran, will succeed CEO Brian Cornell, when step down on Feb. 1, 2026.
"Mike was the right candidate to lead our business back to growth," Cornell told reporters at the time.
Gretchen McCarthy, Target's chief supply chain and logistics officer, told The Associated Press that Target is using stores more precisely and leaning more into fulfillment centers when and where that can help with increasing speed without hurting profits.
"I think about us moving from this national fulfillment model to this market-based approach," she said.
The Associated Press contributed to this report.
Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.
