Target will be debuting sortation centers to help boost the speed of business, according to a company blog post.
A sortation center is a site where teams can focus on sorting packages to be shipped to customers from the stores, the post stated. A pilot opened in Minneapolis last year.
There will be four new sortation centers debuting this fall in Houston, Dallas, the Philadelphia area and Lawrenceville, Georgia, the retail giant said in the post.
When an order is placed on Target’s website, teams at the store work on picking and packing everything up, according to the post. Sortation centers were introduced to retrieve packages as soon as teams are finished doing the sorting, at which time they’re routed for delivery.
The removal of the sorting process from Target’s backrooms saves time and allows for more orders to go through, the post stated.
The retail giant said in the post that it annually invests $4 billion into innovations for the company’s operations.
Meanwhile, Target posted strong growth in the second quarter with a glut of new traffic.
Read more: Target CEO Sees ‘Tremendous Resilience’ In Consumers Amid Renewed COVID Concerns
CEO Brian Cornell said even the rise of the COVID-19 delta variant had not deterred the company’s growth, with the customers seeming “optimistic.”
Target Chief Growth Officer Christina Hennington said the company is predicting that there will be strong showings for back-to-school and back-to-college sales as well.
Target has opened 19 new stores this year and is on track to open an additional 12 in the fall. There were also two new distribution centers opened.
“We’re so focused on investments that drive growth, and you can certainly see that in the improved productivity,” Chief Financial Officer Michael Fiddelke said.
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