Objective to open 4 “sorting” centers for deliveries
Target will launch sorting centers to help speed up the speed of business, according to a company blog post.
A sorting center is a site where teams can focus on sorting packages to be sent to customers from stores, the post said. A pilot opened in Minneapolis last year.
There will be four new sorting centers that will debut this fall in Houston, Dallas, the Philadelphia area and Lawrenceville, Ga., The retail giant said in the post.
When an order is placed on Target’s website, store crews take care of picking up and packing everything, according to the post. Sorting centers have been set up to collect the packages as soon as the teams have finished sorting, at which point they are sent for delivery.
Eliminating Target’s backroom sorting process saves time and allows more orders to be placed, the post said.
The retail giant said in its article that it invests $ 4 billion annually in innovations for the company’s operations.
Meanwhile, Target posted strong growth in the second quarter with a glut of new traffic.
Read more: Target CEO Sees ‘Huge Resilience’ in Consumers Amid New COVID Concerns
CEO Brian Cornell said that even the rise of the COVID-19 delta variant has not held back the growth of the company, with customers appearing “optimistic.”
Target’s growth director Christina Hennington said the company is also predicting strong performance for back-to-school and back-to-school sales.
Target opened 19 new stores this year and is on track to open 12 more in the fall. Two new distribution centers were also opened.
“We’re so focused on investments that drive growth, and you can definitely see it in improving productivity,” said CFO Michael Fiddelke.