Target Corporation this week outlined for the financial community how ongoing investments will accelerate its strategy and drive billions of dollars of profitable sales growth across its multi-channel business by 2030.

The retailer outlined its plans as follows:

  • “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 CEO of Target Corporation.

“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,” continued Cornell.

Target said it would offer more newness, quality and relevance to its product assortment. Investments will aim to create 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 to “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 with more “trend-forward newness to brands like Hearth & Hand with Magnolia and Threshold designed with Studio McGee.”
  • Owned Brand Innovation – Target will launch a new series of Good & Gather collaborations with chefs to “spur further growth in frequency categories,” kicking off March 9 with James Beard Award-winner Chef Ann Kim. More owned brand newness includes iup&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, bringing customers a wider range of affordable options.
  • New Partnerships – Target will offer more brand partnerships across the assortment, including recently announced collections with Champion and Disney and shop-in-shops with Warby Parker.
  • Speed and Flexibility in Apparel – Enhancements in apparel will reduce the time it takes to design, source and manufacture product-to-shelf by managing raw materials, production capacity and lead times to quickly turn new styles and silhouettes into collections to include its rapidly growing All in Motion activewear line.
  • Newness in Beauty – Target’s ongoing evolution in the beauty category continued in February, introducting over 45 new beauty brands and 2,000 new items, with 90 percent priced under $20, with more newness to come in 2025.

Designing for Discovery
Target continues investing in enhancing the digital experience and redefining omnichannel shopping by blending its 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 to include enhancing solutions powered by AI that offer more relevant product recommendations, optimization search results and integration with social media trends.
  • Inspiring discovery across digital platforms – In service of growing its interconnected digital ecosystem, Target plans to expand the size of its Target Plus marketplace. It aims to increase third-party digital sales from approximately $1 billion in 2024 to over $5 billion in 2030, adding hundreds of new brands, including Peloton, Daily Harvest and Honest Baby Clothing. It also plans to double the size of its in-house media company Roundel by 2030, which drove over “$2 billion in value last year.” To continue its profitable growth, the retailer plans to “create 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 while rewarding customers for shopping with 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 more stores nationwide in 2025. Physical stores offer the space and flexibility to incorporate 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 faster, more accurately and efficiently. That includes modernizing the company’s core inventory management system with AI-powered technology solutions to improve reliability and reduce out-of-stocks. The company is also implementing new package delivery solutions, using existing stores and supply chain assets and its shipping capability to enhance delivery speed to consumers.
  • New Target Circle benefits – Over “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 with new perks, benefits and other enhancements. That includes a new partnership with Marriott Bonvoy.
  • Enhancing same-day services – Target’s same-day services were its fastest-growing shopping method in 2024, driven by growth from same-day delivery powered by Target Circle 360. The retailer aims to accelerate the growth of these services in 2025 and beyond by improving awareness and ease of same-day delivery through the shopping experience and adding new enhancements to make the drive-up and returns experience more convenient for customers.

Image courtesy Target Corporation