Target Corp.

THE 2019 POWER 25 HQ: MINNEAPOLIS STORE COUNT: 1,829

E-commerce fulfillment has been one of Target Corp.’s biggest drivers this year, with its “stores as hubs” strategy dramatically increasing its efficiency and boosting profits. The Minneapolis-based retailer saw its best comparable growth in more than a decade, rising 5.3% year over year with a significant increase of 31% for digital. Using stores as hubs has allowed Target to ship items more quickly and leverage its pickup and drive-up programs (accounting for almost 2 million transactions last year), which cost up to 90% less than shipping from a warehouse, company officials say. The rapid implementation of this streamlined fulfillment has had major help from Shipt, which the retailer acquired last year. Target has also streamlined its supply chain, sending stores careful selections of only the items that they need—sometimes in several shipments a day—which frees up staff from spending unnecessary time organizing stock. Target also thrilled its shoppers with an expansion of its loyalty program this year. The Target Circle program is free and offers “personalized perks” along with a 1% discount on every trip and a one-year Shipt discount.