In Q3, Target faced unexpected supply chain costs that impacted its financial performance, as noted by CEO Brian Cornell. The retailer experienced pressure from digital fulfillment and supply chain expenses, resulting in a reduction in gross margin. Challenges included a strike at East Coast and Gulf Coast ports, which prompted Target to reroute shipments to West Coast ports, increasing inventory costs. Despite these hurdles, Target improved shipping times and reduced last-mile delivery costs through strategic changes in its sortation center network, which handled significantly more packages compared to the previous year.

Source: https://www.supplychaindive.com/news/target-supply-chain-disruptions-costs-q3-earnings/733685/