“We have 6 of these facilities operating today, including 3 that have opened in the last few months, and we have plans to add 5 more by early next year.”

In context

“significant investments in our supply chain focused on 3 main priorities. The first is to build additional upstream capacity to our network, given that we continue to grow sales on top of the $27 billion we added in 2020 and 2021. In support of this goal, we opened 2 upstream DCs near the end of 2021 and plan to open 6 new upstream facilities over the next several years, including 2 on track to open in 2023. In addition to the space we're adding to the network, we're continuing to modernize how our existing distribution centers serve our stores by developing and automating processes that reduce the amount of store workload devoted to receiving inventory and restocking store sales floors. And finally, we're rapidly expanding the number of sortation centers operating around the country. We have 6 of these facilities operating today, including 3 that have opened in the last few months, and we have plans to add 5 more by early next year. These small facilities expand ship-from-store capacity in the locations they serve while significantly reducing last-mile delivery costs, particularly as we integrate our Shipt drivers into the process. Given the package delivery density we've achieved across many markets over the last few years, we see continued opportunities to add more sortation centers over the next few years, which adds speed and significantly reduce last-mile costs in markets where they operate. As I mentioned last quarter, this year's capital projects are being impacted by the cost increases, material shortages and supply chain pressures that are affecting other parts of our business. And I'm really proud of how our construction team is managing through these headwinds. More specifically, while cost increases”