Target’s physical footprint is central to its e-commerce story, putting inventory closer to shoppers and supporting faster fulfillment.

We are finding that Target Corporation’s stores are doing more than supporting online orders. They are helping drive digital growth—and its second-quarter fiscal 2026 results show how.

Digital comparable sales increased 8.7% year over year, accelerating from 4.3% growth in the prior-year period. Same-day delivery led the gains, growing more than 25%. Digitally originated sales accounted for 19.6% of merchandise sales, up from 18.9% a year earlier.

Behind those numbers is a network of more than 2,000 stores that serves as both a shopping destination and a fulfillment operation.

Proximity Is the Advantage

Target uses its stores to fulfill digital orders through shipping, Order Pickup, Drive Up and same-day delivery. Management emphasized that keeping inventory close to customers enables faster, more reliable and more cost-effective fulfillment.

During the quarter, stores fulfilled 97.6% of merchandise sales. That figure includes both purchases made in stores and digitally originated orders—not digital orders alone.

We are finding that the connection between stores and digital demand is the heart of this story. Target’s physical footprint gives shoppers multiple ways to receive their purchases while providing the infrastructure to fulfill them.

Faster Fulfillment, Better Availability

Operational execution is strengthening alongside digital demand. Target fulfilled nearly 30% more same-day and next-day units than a year earlier.

Inventory reliability also reached multiyear highs, with product availability improving across frequently purchased items. That progress supports the store-based model: proximity matters, but having the right products available matters, too.

Investing in the Network Behind the Growth

Target opened 17 locations during the second quarter while advancing more than 100 remodels. Those investments expand and enhance the physical network that supports digital demand.

The story we are uncovering is not simply that Target’s online business is growing. It is that stores remain central to how the company delivers that growth—bringing inventory closer, supporting convenient pickup options and enabling faster delivery.