Target said that same-day delivery, powered by its Target Circle 360 membership program, grew more than 30% in the fourth quarter, a sign that demand for faster fulfillment remains strong even as overall sales growth remains modest.
The retailer highlighted the increase in its latest earnings report, pointing to continued momentum in same-day services, including delivery and pickup. Target Circle 360 bundles unlimited same-day delivery with loyalty perks, tying speed more directly to customer retention.
The growth comes as retailers compete aggressively on convenience. Target leans heavily on its nearly 2,000 stores to fulfill digital orders, using them as local hubs to pick, pack, and ship items. That store-based model allows the company to move orders quickly without relying only on large, centralized distribution centers.
Shipt, Target’s same-day delivery subsidiary, plays a central role in that strategy. The platform connects store inventory with a network of contract shoppers and drivers, combining store fulfillment with last-mile delivery capacity. The approach has helped Target expand same-day services across thousands of communities.
Fulfillment and inventory trends
Beyond delivery growth, Target reported improvements in several supply chain-related areas.
The company said its fourth-quarter gross margin rate expanded slightly, helped in part by lower inventory shrink and reduced supply chain and digital fulfillment costs. For the full year, however, gross margin declined slightly, reflecting higher product and import costs.
Target said sales improved late in the quarter, led by food and beverage, beauty, and toys. Faster-moving essentials like groceries require tighter inventory management than discretionary goods.
Overall net sales declined modestly year-over-year. Still, the strength in same-day delivery suggests shoppers continue to prioritize convenience and fast access to goods.
For supply chain leaders, the question is whether same-day growth can continue without adding pressure on store labor, fulfillment costs, and margins. Target’s latest results suggest the company is managing that balance for now, but speed remains one of the most expensive competitive fronts in retail.
