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Target Extends Local-Delivery Bet With Hubs in Chicago and Denver

  • Expansion will bring retailer’s sorting centers to nine
  • Company’s goal is to cut costs as it vies with Amazon, Walmart
Target’s sorting center in Minneapolis.
Target’s sorting center in Minneapolis.Source: Target

Target Corp. will open three new package-sorting centers during the next year -- two in greater Chicago and one in the Denver area -- to further its strategy of using stores to handle online orders. 

The expansion will give Target nine of the mini-warehouses in the US, and more are planned for the coming years, according to a company statement Monday. The hubs, which receive goods from stores and forward them to customers, are designed to speed local deliveries and cut the shipping costs that typically make online orders less profitable than in-store sales.