Inside Target’s New US$367m US Distribution Centre

Target says it is committed to improving the delivery of fresh products for consumers at a faster pace.

That is why the US retailer has opened a US$367m distribution centre in Thornton, Colorado, focused on streamlining its supply chain to bring fresh products to market faster.

The Thornton Distribution Center is a temperature-controlled facility that will hire 383 team members across 129 stores in 11 states, allowing stores to be stocked up to two days faster.

This is the ninth food distribution centre for Target and its largest in the US.

Amy Probst, Senior Vice President of Food and Beverage Supply Chain, Trade and Transportation, says: “This facility represents so much more than just a new building. This is an investment in the future of food and beverages at Target. 

“We’re advancing and expanding our fresh supply chain capabilities so that guests can rely on us for all their high-quality meals, snacks and seasonal treats.”

The facility will be a connector between vendors and additional food distribution centers, combining shipments from various vendors into trucks that will travel to designated locations. This will lower the overall volume and cost of transportation across Target’s network as shipments move to other facilities. 

Target’s supply chain network

As Target continues to see growth in its food and beverage business, it plans to build a fresh supply chain network across the US so  products can be closer to consumers.

Erik Hansen is the Site Director for the Thornton Distribution Center. He highlighted the importance of moving products from “farm to shelf” as quickly as possible to maintain freshness.

He says: “When we think about a fresh business, there’s nothing more important to the guest experience than delivering freshness. 

“The opening of the Thornton Food Distribution Center in Colorado is going to be able to provide a greater experience for our guests through fresher food and supporting food availability and totality.”

The facility also expands Target's long-term presence in Colorado. The company has invested millions of dollars in donations and fundraising efforts across the state, alongside opening additional stores along with one of its other distribution centres.

Food and beverage at Target

“When I think about what food means to Target, the more we invest in the supply chain, it gives our guests even more reason to choose Target’s food and beverage as their go-to,” Amy says. 

“Not just something guests love to shop at Target, but really the reason why they choose Target in the first place.

“Thornton is an investment upstream so that we can deliver that excitement, that delight at store level. As our ninth distribution center and the first in our network with consolidation capabilities, it improves how the food moves across our supply chain and supports almost 130 stores throughout the region. 

“That means, fresher inventory, stronger in-stock reliability, expanded assortment opportunities, and faster replenishment, all helping us deliver a better experience for guests while supporting continued growth in food and beverage.”

The Thornton facility is part of Target's broader effort to modernise and strengthen its supply chain operations.

In 2023, Target’s global supply chain, procurement and logistics teams utilised artificial intelligence to aid in understanding store replenishment and inventory visibility. Artificial intelligence was also used to understand guests’ needs for specific products in stores and online.