Seeking to enhance its distribution processes and help ensure it has sufficient supply of hot items such as trending toys, Target has opened a new 1.2 million-square-foot Receive Center in Houston. The expanded capacity also will help Target better manage products that are seasonal, bulky or difficult to forecast.
The new center, which intakes product directly from Target’s global vendors, will service six regional distribution centers (DCs) and one flow center. Positioned between Target’s import warehouses in Georgia and Washington State, the facility adds regionally based capacity at an earlier stage in the supply chain, allowing Target to hold off on distributing inventory until it’s needed. A video is available here.
Target has been focused on improving store operations as it tries to engineer a turnaround under new CEO Michael Fiddelke. The retailer added $2 billion to its 2026 capital expenditures and is spending the funds on a chainwide refresh of its stores as well as supply chain investments such as the new center. Target also is emphasizing larger-format stores: five of the six stores opening next month will exceed the retailer’s 125,000-square-foot average size.
The new facility was designed using immersive 3D visualization and simulation technology at Target’s XR Experience Center in Minneapolis. This was the first time Target used the technology end-to-end in the design process to create a 3D digital model of the facility before construction began. Teams could pressure test layouts, processes and operational flow in a virtual environment to build confidence in what was ultimately constructed.
The Receive Center’s opening brings 185 new jobs to Houston, adding to more than 6,300 Target associates working at the region’s 40 stores and sortation center in the area.
