Target unveils new last-mile delivery fulfillment concept

Extending its online reach in the Atlanta market, Target Corp. has launched a new e-commerce fulfillment concept in Smyrna, Georgia.

Known as a Target Last Mile Delivery (TLMD) extension facility, the recently opened site supports a larger Target sortation center in Atlanta, handling any online orders falling outside the sortation facility’s delivery area.

Minneapolis-based Target on Wednesday described the TLMD extension as a “steppingstone” for the sortation center, enabling it to serve online customers beyond its delivery radius. Local, presorted packages transfer from the sortation center to the TLMD extension site, where associates stage the orders for pickup and next-day delivery by drivers from Shipt—Target’s on-demand delivery subsidiary—to additional neighborhoods, the retailer said.

Target noted that the Smyrna TLMD extension, its first, already has made an impact, boosting by 30% the number of people served by the sortation center and extending its reach to another 500,000 customers—for total of over 3 million in the Atlanta market. And the gain brought by the extension facility “comes at a fraction of the cost” of a full-size sortation center, the retailer added.

“TLMD extensions represent the latest milestone in our journey to deliver a best-in-class experience for our guests, however they choose to shop with us,” John Mulligan, executive vice president and chief operations officer at Target, said in a statement. “These facilities are a continuation of our innovative efforts to serve millions of guests and reach millions more, while maximizing speed, efficiency and care across our real estate portfolio.”

A micro-fulfillment concept, the sortation center—introduced in 2020 at a Minneapolis facility—is designed to help lower costs and drive operational efficiencies while speeding delivery for customers, according to Target. Under the model, backroom store staff who process digital orders focus on picking and packing. Orders then are brought to the sortation center for collating to various carriers for delivery, saving space at stores and freeing up associates to process more orders and expedite deliveries.

Target said the Smyrna TLMD extension has boosted by 30% the number of people served by the Atlanta sortation center. / Photo courtesy of Target

Target has said the sortation centers also enable its teams to more easily scale to fulfill a rising number of orders, as well as consolidate orders and batch deliveries for carriers. That includes same-day delivery via Shipt, whose drivers collect batches of local orders from the sortation centers—and now the TLMD extension—for faster last-mile delivery to customers.

The inception of the TLMD facility brings an ancillary site to the sortation center, increasing its order capacity and service area. Target said Shipt drivers are now delivering up to 1,500 packages per day from the Smyrna TLMD site, and that figure stands to climb in the coming months.

“Team members and leaders have been very excited to be a part of something new,” according to DaVion Ezell, operations director for Target’s Atlanta sortation center and TLMD extension. “We’re actively problem-solving to ensure that we are set up for success as we get closer to the holiday season to be able to achieve and exceed that demand,” Ezell added.

Target said the TLMD extension supports its “stores as hubs” strategy, which positions stores as showrooms and service centers as well as digital fulfillment sites. Online orders are packaged at stores and shipped to Target’s network of sortation centers for next-day delivery through Shipt. The retailer noted that it’s taking a “test and learn” approach to the TLMD extension concept to gauge the potential for more such sites.

“Our guests have come to rely on the convenience and ease of our same-day and next-day delivery capabilities thanks to our stores-as-hubs model,” commented Gretchen McCarthy, executive vice president and global supply chain and logistics officer for Target. “Now, with the power of our team and drivers with Shipt, our latest Target Last Mile Delivery investments allow us to expand our next-day delivery offerings to thousands more guests in the greater Atlanta area.”

In February, Target announced a $100 million investment to expand next-day delivery capabilities across major U.S. markets. Plans call for the retailer’s sortation network to grow to more than 15 facilities by the end of 2026. Nine sortation centers are currently operating in Minnesota, Texas, Colorado, Illinois, Georgia and Pennsylvania, including the three most recently opened facilities in the greater Chicago and Denver metropolitan areas.