Accelerations in digital experience, newness and value, speed and reliability will amplify the everyday discovery and delight that differentiates the brand
MINNEAPOLIS, March 4, 2025 /PRNewswire/ -- At its financial community meeting today, Target Corporation (NYSE: TGT) outlined how ongoing investments will aim to accelerate its strategy and drive billions of dollars of profitable sales growth across its multi-channel business by 2030. The plans include:
- Bringing consumers an on-trend and affordable assortment packed with style, newness and value
- Reinforcing Target as the destination for discovery by further blending its one-of-a-kind physical, digital and social commerce shopping experiences
- Increasing ease, reliability and speed by investing in supply chain and fulfillment capabilities, and rewarding guests for choosing Target through Target Circle benefits
"Shoppers continue to seek differentiated options and distinctive shopping experiences without sacrificing value, and Target has the scale, strategy and capabilities to support all the ways consumers shop and engage with brands," said Brian Cornell, chair and chief executive officer, Target. "With gains in consumer traffic, continuing improvements in speed and reliability, and accelerating growth across digital capabilities, we are doubling down on initiatives that scale these capabilities and drive meaningful top-line and bottom-line growth. Our strategy is all about creating today's Tarzhay, offering everyday discovery and delight for millions of families and ensuring Target is a consumer favorite for years to come."
Delighting guests with on-trend newness and exceptional value
Target will offer even more newness, quality and relevance across its unique product assortment. Investments will aim to build further momentum in the retailer's core discretionary categories and accelerate growth in frequency categories. Plans include:
- Reimagining key categories – Beginning in 2025, a multi-year initiative will build momentum in product categories with growth potential. For example, a reinvention in gaming, sports and toys will offer new and expanded assortments and an enhanced in-store experience that will strengthen Target's position as a gaming destination with video game releases and expand its youth sports offerings. The retailer is also refreshing its home assortment by adding even more trend-forward newness to brands like Hearth & Hand with Magnolia and Threshold designed with Studio McGee.
- Owned brand innovation – To spur further growth in frequency categories, Target will launch a new series of Good & Gather Collabs with celebrated chefs, kicking off March 9 with James Beard Award-winner Chef Ann Kim. More owned brand newness — including up&up and other essentials-brand expansions, 600 new food and beverage items across Good & Gather and Favorite Day and a refresh in Boots & Barkley pet supplies — will bring consumers a wider range of affordable options.
- New partnerships – Target will offer more of its beloved brand partnerships across the assortment, including recently announced collections with Champion and Disney, as well as shop-in-shops with Warby Parker.
- Speed and flexibility in apparel – Enhancements in apparel will reduce the time it takes to design, source and get product on shelves — strategically managing raw materials, production capacity and lead times to quickly add new styles and silhouettes to collections such as its rapidly growing All in Motion activewear line.
- Newness in beauty – Target's ongoing evolution in the beauty category continued in February with the introduction of more than 45 new beauty brands and 2,000 new items, with 90% priced under $20, and more newness to come in the year ahead.
Designing for discovery, however consumers shop
Target continues to invest significantly to enhance the digital experience and redefine omnichannel shopping by further blending its one-of-a-kind social, digital and in-store experiences. Plans for 2025 and beyond include:
- Elevating shopping with technology – The retailer will innovate with search, social and data-driven personalization. That includes enhancing solutions powered by artificial intelligence (AI) that offer more relevant product recommendations, optimize search results and integrate with social media trends.
- Inspiring discovery across digital platforms – In service of growing its interconnected digital ecosystem, Target plans to dramatically expand the size of its Target Plus marketplace. It aims to grow those third-party digital sales from approximately $1 billion in 2024 to more than $5 billion in 2030, adding hundreds of new brands like Peloton, Daily Harvest and Honest Baby Clothing to attract guests and expand offerings. It also plans to double the size of its in-house media company Roundel by 2030, which drove more than $2 billion in value last year. To continue its profitable growth, the retailer plans to create even more personalized connections, grow its base of vendor partners with hundreds more each year, and further integrate within Target Plus and the Target Circle loyalty program.
Delivering ease, reliability and rewards
The retailer will also invest across its stores and supply chain network to reach more consumers and get products to them faster — whenever, wherever and however they choose to shop — while rewarding guests for choosing Target. Plans include:
- New stores and remodels – Through its ongoing effort to add more than 300 stores over 10 years, Target plans to open around 20 new stores, the majority large formats, and invest to remodel many more across the country in 2025. Physical stores offer the space and flexibility to incorporate the best of Target's shopping experience while powering more efficient fulfillment operations and fueling digital growth as part of the company's stores-as-hubs model.
- Supply chain evolution – Updates and expansions across the company's supply chain network will move inventory with more speed, accuracy and efficiency. That includes modernizing the company's core inventory management system with AI-powered technology solutions that will improve reliability and reduce out-of-stocks. The company is also implementing several new package delivery solutions, leveraging existing stores and supply chain assets and its Shipt capability, to further improve delivery speed to consumers.
- New Target Circle benefits – More than 13 million members joined the Target Circle loyalty program in 2024. Following its successful relaunch in April, Target aims to triple its Target Circle 360 membership base over the next three years through new perks, benefits and other enhancements. That includes a new partnership with Marriott Bonvoy to make traveling even easier and more rewarding for Target Circle 360 members.
- Enhancing same-day services – Target's signature same-day services were its fastest-growing mode of shopping in 2024, driven by meaningful growth from Same-Day Delivery powered by Target Circle 360. The retailer aims to accelerate these services' growth in 2025 and beyond by improving awareness and ease of same-day delivery throughout the shopping journey and adding new enhancements to make the Drive Up and Returns experiences even more convenient.
To stay updated on Target's strategy and initiatives, visit corporate.target.com.
Miscellaneous
Statements in this release regarding the company's future financial performance, planned investments in its business, and strategy for growth are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the company's results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended February 3, 2024. Forward-looking statements speak only as of the date they are made, and the company does not undertake any obligation to update any forward-looking statement.
About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website and press center.
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SOURCE Target Corporation
