Target's Digital Growth Story Gains Strength With Same-Day Delivery

Target's digital fulfillment machine is firing on all cylinders. TGT reported 8.7% comparable digital sales growth in Q2 fiscal 2026, driven by same-day delivery volume that surged over 25% year-over-year. The retailer fulfilled nearly 30% more same-day and next-day units compared to the prior year, using its store network as fulfillment hubs for over 95% of sales.

The strategy is paying off in share price. TGT has rallied 30.6% over the past three months, outpacing industry peers. Zacks Investment Research upgraded the stock to a Rank #2 (Buy) on higher earnings estimates, signaling analysts see momentum continuing.

Target's store-as-hub model turns physical locations into competitive advantages against pure-play e-commerce rivals. By skipping dedicated fulfillment centers for most orders, TGT cuts delivery times and last-mile costs while leveraging existing real estate. The 25%-plus same-day growth rate suggests customers are willing to pay for speed, a margin-accretive shift as delivery fees and order density improve unit economics.