Target Opens $367M Colorado Food Hub to Speed Deliveries

Target has opened a $367 million food distribution center in Thornton, Colorado that will serve 129 stores across 11 states and replenish locations up to two days faster than before, according to FreightWaves. The 529,000-square-foot temperature-controlled facility is the largest of Target's nine food distribution centers and the first with consolidation capabilities. The consolidation section combines shipments from different vendors into fully loaded trucks headed to specific destinations, reducing transportation volume and costs across Target's network. This is the fourth food distribution center Target has added in three years as the company expands its fresh supply chain network. During the first quarter, Target introduced 3,000 new food items, with sales from the new assortment growing more than 50% compared to the prior product mix. For trucking: The facility's consolidation function means fewer partial loads moving through Target's network and more efficient unload processes at downstream warehouses. That translates to better utilization of truck capacity and potentially fewer empty miles. Drivers hauling consolidated freight from Thornton will move full loads, while the faster replenishment cycle could shift demand patterns for regional food distribution runs. The new center will employ more than 350 people. Target has been restructuring its supply chain operations, including opening a $265 million import receive center in April and naming a new chief supply chain officer in recent weeks.