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
