Same-Day Delivery Emerges as Target's Biggest Digital Growth Driver

Same-day fulfillment is emerging as one of Target Corporation’s TGT strongest digital growth catalysts, rapidly becoming the company’s most powerful traffic engine. As overall demand remains soft, management continues to highlight speed and convenience as core differentiators driving digital engagement. In the third quarter of fiscal 2025, digital comparable sales grew 2.4%, fueled by more than 35% growth in same-day delivery, powered by the Target Circle 360 membership program. 

Target’s operational strategy has shifted to ensure that fulfillment speed is built directly into its store network. Today, 80% of U.S. households are reached with same-day services, while 99% are eligible for two-day shipping. 

The retailer is also restructuring fulfillment workloads across stores to improve cost efficiency and guest experience. Insights from a Chicago pilot showed success by shifting more digital shipment volume to lower-traffic stores better equipped for backroom processing, allowing high-traffic stores to focus on in-store service. The model will now expand to 35 additional markets. 

Membership-driven convenience continues to accelerate usage. Target Circle 360 contributed meaningfully to same-day demand, reinforcing the company’s loyalty ecosystem as a growth multiplier. Management is also introducing early-access events and personalized recommendations to strengthen engagement.

As Target prepares for holiday momentum, same-day fulfillment will play an even more crucial role. Paired with expanded assortment, seasonal value offerings and enhanced app tools, rapid delivery capability positions Target to win share among convenience-driven shoppers unwilling to compromise on timing or price.

While overall comps remain negative, Target sees same-day delivery as instrumental to rebuilding its growth profile. As speed becomes the primary battleground in omnichannel retail, Target’s scale, store proximity and membership momentum position same-day fulfillment as a defining engine for future gains.

WMT & BBY Push Faster Delivery While TGT Expands Same-Day Services

Walmart Inc.’s WMT delivery service continues to set a high standard with faster, more reliable fulfillment in the third quarter of fiscal 2026.

Walmart fulfilled 35% of U.S. digital orders in under three hours, with expedited delivery sales surging nearly 70% and sub-one-hour delivery emerging as the fastest-growing channel. Supported by automation and improved accuracy, Walmart is delivering record-high satisfaction across its pickup and delivery services.

Best Buy Co., Inc. BBY continued to enhance its delivery capabilities as the company achieved its fastest shipping fulfillment speeds ever and delivered its highest on-time rate in the third quarter of fiscal 2026.

Best Buy also expanded 2-hour delivery window scheduling to all markets, giving customers more control and convenience. These improvements strengthen Best Buy’s overall fulfillment reliability and support a better omnichannel experience.

Target’s Price Performance, Valuation & Estimates

The TGT stock has lost 31.8% year to date against the industry’s growth of 6%.

Target’s forward 12-month price-to-earnings ratio of 12.03 reflects a lower valuation than the industry’s average of 30.15. TGT has a Value Score of D.

The Zacks Consensus Estimate for TGT’s fiscal 2025 earnings implies a year-over-year decline of 17.7%, while the same for fiscal 2026 indicates growth of 6%. Earnings estimates for fiscal 2025 and 2026 have been southbound by 13 cents and 37 cents per share, respectively, in the past 30 days.

Target currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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