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Target's Same-Day and Next-Day Units Rise Nearly 30% as Speed Improves
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Key Takeaways
Target fulfilled nearly 30% more same-day and next-day units year over year in fiscal Q2 2026.
Same-day delivery rose more than 25%, helping drive an 8.7% increase in comparable digital sales.
Target fulfills over 95% of sales through stores, supporting faster and more reliable fulfillment.
Target Corporation (TGT - Free Report) is seeing stronger momentum in faster fulfillment as shoppers increasingly lean on convenience. In the second quarter of fiscal 2026, the retailer fulfilled nearly 30% more same-day and next-day units year over year, highlighting the growing role of speed in its guest experience. Same-day delivery was a particularly strong contributor, rising more than 25% and helping drive an 8.7% increase in comparable digital sales.
The company’s physical stores remain central to this capability. Target fulfills more than 95% of its sales through stores, bringing inventory closer to shoppers and enabling faster, more reliable and cost-effective fulfillment. The retailer is also using technology to improve how inventory moves through its network. Proxima, its digital twin of the middle-mile inventory positioning system, allows teams to test inventory-flow plans before implementation, evaluate potential downstream effects and make inventory decisions with greater confidence.
Faster delivery is also being supported by better product availability. Target said overall inventory reliability metrics reached multiyear highs, while availability of its most frequently purchased items was the strongest in recent years. This matters because faster fulfillment depends on having the right products available in the right locations when orders arrive.
Target plans to keep investing to get even faster, with better inventory positioning, stronger availability and its store-based fulfillment network supporting a quicker and more dependable digital experience.
How Walmart & Dollar General Compare on Delivery Speed
Walmart Inc. (WMT - Free Report) is also leaning heavily on faster fulfillment to deepen customer engagement. In second-quarter fiscal 2027, Walmart U.S. e-commerce sales rose 24%, with store-fulfilled delivery sales growing more than 40%. Fast delivery in the United States climbed 48%, while customers increasingly received orders in under 30 minutes. Walmart has expanded sub-30-minute delivery to 38 U.S. markets, supported by its store footprint, fulfillment infrastructure and local delivery capabilities.
Dollar General Corporation (DG - Free Report) is similarly expanding delivery as an extension of its convenience proposition. Dollar General said delivery contributed an estimated 40 basis points to comparable-sales growth in the second quarter of fiscal 2026. Through myDG Delivery, DoorDash and Uber Eats, Dollar General estimates roughly 80% sales incrementality, with digitally engaged and delivery customers more than twice as productive as nondigitally engaged shoppers.
How Does Target Stack Up Against Its Industry?
Target has seen its shares rally 16.6% over the past three months against the industry’s 3% decline.
Image Source: Zacks Investment Research
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.83, lower than the industry’s 27.18. However, the stock is trading above its 12-month median level of 14.89.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.1% and 37.8%, respectively. For the next fiscal year, the consensus estimate indicates a 3.1% rise in sales but a decline of 9.5% in earnings per share.
Image Source: Zacks Investment Research
Target’s Investment Case
Target’s improving traffic, stronger digital momentum, broad-based category growth and better inventory reliability indicate that its refreshed strategy is gaining traction. Same-day delivery growth, continued price investments and higher-margin revenue streams further strengthen the operating backdrop. Management also raised fiscal 2026 sales and EPS guidance, reflecting greater confidence in underlying momentum. These factors support a constructive investment view on this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
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Target's Same-Day and Next-Day Units Rise Nearly 30% as Speed Improves
Key Takeaways
Target Corporation (TGT - Free Report) is seeing stronger momentum in faster fulfillment as shoppers increasingly lean on convenience. In the second quarter of fiscal 2026, the retailer fulfilled nearly 30% more same-day and next-day units year over year, highlighting the growing role of speed in its guest experience. Same-day delivery was a particularly strong contributor, rising more than 25% and helping drive an 8.7% increase in comparable digital sales.
The company’s physical stores remain central to this capability. Target fulfills more than 95% of its sales through stores, bringing inventory closer to shoppers and enabling faster, more reliable and cost-effective fulfillment. The retailer is also using technology to improve how inventory moves through its network. Proxima, its digital twin of the middle-mile inventory positioning system, allows teams to test inventory-flow plans before implementation, evaluate potential downstream effects and make inventory decisions with greater confidence.
Faster delivery is also being supported by better product availability. Target said overall inventory reliability metrics reached multiyear highs, while availability of its most frequently purchased items was the strongest in recent years. This matters because faster fulfillment depends on having the right products available in the right locations when orders arrive.
Target plans to keep investing to get even faster, with better inventory positioning, stronger availability and its store-based fulfillment network supporting a quicker and more dependable digital experience.
How Walmart & Dollar General Compare on Delivery Speed
Walmart Inc. (WMT - Free Report) is also leaning heavily on faster fulfillment to deepen customer engagement. In second-quarter fiscal 2027, Walmart U.S. e-commerce sales rose 24%, with store-fulfilled delivery sales growing more than 40%. Fast delivery in the United States climbed 48%, while customers increasingly received orders in under 30 minutes. Walmart has expanded sub-30-minute delivery to 38 U.S. markets, supported by its store footprint, fulfillment infrastructure and local delivery capabilities.
Dollar General Corporation (DG - Free Report) is similarly expanding delivery as an extension of its convenience proposition. Dollar General said delivery contributed an estimated 40 basis points to comparable-sales growth in the second quarter of fiscal 2026. Through myDG Delivery, DoorDash and Uber Eats, Dollar General estimates roughly 80% sales incrementality, with digitally engaged and delivery customers more than twice as productive as nondigitally engaged shoppers.
How Does Target Stack Up Against Its Industry?
Target has seen its shares rally 16.6% over the past three months against the industry’s 3% decline.
Image Source: Zacks Investment Research
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.83, lower than the industry’s 27.18. However, the stock is trading above its 12-month median level of 14.89.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.1% and 37.8%, respectively. For the next fiscal year, the consensus estimate indicates a 3.1% rise in sales but a decline of 9.5% in earnings per share.
Image Source: Zacks Investment Research
Target’s Investment Case
Target’s improving traffic, stronger digital momentum, broad-based category growth and better inventory reliability indicate that its refreshed strategy is gaining traction. Same-day delivery growth, continued price investments and higher-margin revenue streams further strengthen the operating backdrop. Management also raised fiscal 2026 sales and EPS guidance, reflecting greater confidence in underlying momentum. These factors support a constructive investment view on this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.