Target Amplifies Omnichannel Strategy with Distribution Center in Georgia

A target supermarket store seen from the car park.

Target fortifies its omnichannel approach with the inauguration of a new distribution center in Hampton, Georgia, enhancing both in-store and delivery options for customers in the Southeast.

Expanding the ‘Flow’ Center Network

Target has unveiled a new distribution center in Hampton, Georgia, marking a significant step in its evolution as an omnichannel retailer. This facility is the fourth full-service “flow” center in Target’s network, a concept initiated in New Jersey in 2018. These centers are designed to replenish stores and expedite product delivery to customers, thereby enhancing speed and efficiency.

The new facility is part of Target’s broader strategy to expand its presence in Georgia, where it now operates seven supply chain facilities. The latest addition is expected to create over 400 jobs and enhance the company’s shipping efficiency in the Southeast region.

Balancing Online and In-Store Presence

In the face of increasing competition from retail giants like Amazon and Walmart, Target is betting on its omnichannel strategy. The company plans to add 10 new supply chain facilities to its distribution network over the next decade. This expansion includes the introduction of new sortation centers to boost last-mile delivery capabilities and facilities like the recently opened flow center in Hampton to provide additional delivery options.

While Target is heavily investing in its supply chain infrastructure for online order fulfillment, it remains committed to its physical stores. The company announced plans to open more than 300 new stores earlier this year, in addition to expanding its owned brands and membership rewards program.

Strategic Location Selection

Target’s strategic placement of its supply chain facilities is noteworthy. As of February, the company had 58 total facilities with a combined footprint of 61.5 million square feet. With the opening of the new Hampton facility, seven of Target’s total supply chain facilities are now located in Georgia. This state has become a crucial location within Target’s supply chain network, with the company investing millions of dollars over the past few years to expand its presence there.

Georgia’s importance as a supply chain hub is on the rise, with the Port of Savannah reporting record growth in fiscal 2023 and the Georgia Ports Authority continuing to report increases in cargo volumes.