Target Taps Shipt to Expand Next-Day Delivery to 50 Markets

Target bought same-day delivery platform Shipt for $550 million in cash in 2017, making the business a wholly owned subsidiary and deepening its control of digital fulfillment. The retailer is now using stores as local shipping hubs and Shipt drivers for next-day orders. The approach replaces portions of costly long-haul shipping with shorter local routes, potentially improving delivery speed and protecting margins in the fiercely competitive U.S. retail market.

Shipt said on April 10, 2026, that Target Last Mile Delivery Direct, piloted at six stores in two markets in 2025, will expand to 100 stores across 50 markets by year-end. Target said the broader next-day service would then reach about 60% of the U.S. population. Most shippable products qualify, representing hundreds of thousands of items and about 85% of the assortment sold in Target stores; the company disclosed no investment figure for the expansion.