Target Announces Strategic Plans to Drive More Than $15 Billion in Sales Growth by 2030

Rhea-AI Summary

Target (NYSE: TGT) has unveiled strategic plans aimed at driving over $15 billion in sales growth by 2030. The company outlined key initiatives including:

- Enhanced digital experience and product assortment with focus on affordability and trends
- Expansion of Target Plus marketplace from $1B (2024) to $5B by 2030
- Addition of 300+ stores over 10 years, with 20 new stores planned for 2025
- Implementation of AI-powered inventory management and improved delivery solutions
- Launch of new Good & Gather Collabs with celebrated chefs

The strategy includes reimagining key categories like gaming and sports, expanding owned brand innovations, and strengthening brand partnerships. Target plans to double its Roundel media company by 2030, which generated over $2B in value last year. The company aims to triple its Target Circle 360 membership base over the next three years, introducing new benefits including a Marriott Bonvoy partnership.

Positive

• Planned expansion of 300+ stores over 10 years
• Target Plus marketplace projected growth from $1B to $5B by 2030
• Roundel media company generated $2B+ in value
• 13M+ new Target Circle loyalty members joined in 2024
• Same-day services were fastest-growing shopping mode in 2024

Negative

• Significant capital investment required for store expansion and digital transformation
• Heavy reliance on discretionary spending categories amid economic uncertainty
• Increased competition in digital marketplace space

Insights

Retail Strategy Expert

Target's strategic roadmap to drive $15 billion in sales growth by 2030 represents a comprehensive approach to evolving consumer preferences while maintaining its distinct market positioning. The initiative reflects deeper understanding of the omnichannel landscape where shoppers increasingly demand both value and discovery experiences.

The reimagination of discretionary categories (gaming, sports, toys) alongside investments in frequency categories shows Target recognizing the dual importance of protecting its high-margin specialty business while driving consistent traffic. The expansion of Target Plus marketplace from $1 billion to $5 billion by 2030 represents a significant shift in its digital strategy, creating a more competitive alternative to established marketplaces while leveraging existing fulfillment infrastructure.

The planned addition of 300 stores over ten years counters the industry-wide digital shift, suggesting Target sees continued value in physical retail touchpoints - both as shopping destinations and fulfillment hubs. This multi-pronged approach balances immediate consumer needs with long-term infrastructure investments.

Target's AI implementation for inventory management addresses a critical operational weakness in retail - out-of-stocks - while the loyalty program expansion (13+ million new members in 2024) indicates strong consumer engagement. The Marriott Bonvoy partnership adds valuable differentiation to the Circle 360 membership, potentially attracting higher-income demographics.

The strategy combines immediate experiential enhancements with foundational capability building, positioning Target to maintain its distinctive market position despite intensifying competition in both value and premium retail segments.

Financial Analyst

Target's $15 billion sales growth initiative presents a well-structured investment thesis with clear revenue diversification beyond traditional retail channels. The company's focus on expanding high-margin businesses - particularly doubling Roundel (which generated $2 billion in value last year) and growing Target Plus marketplace fivefold to $5 billion - indicates a strategic shift toward asset-light, technology-driven revenue streams with superior margin profiles.

The capital allocation strategy balances short-term growth initiatives (brand partnerships, category reimagination) with long-term structural investments (AI-powered inventory systems, supply chain modernization). This balanced approach should help maintain consistent financial performance throughout the investment cycle.

Target's commitment to physical expansion (300 stores over ten years) represents significant capital expenditure, but the company's stores-as-hubs model transforms these locations into multi-purpose assets supporting both traditional retail and digital fulfillment operations. This increases potential return on invested capital compared to single-purpose facilities.

The loyalty program expansion strategy addresses customer acquisition costs and retention efficiency. With 13+ million new members in 2024 alone, the Target Circle ecosystem provides valuable first-party data supporting both merchandising decisions and Roundel's targeted advertising capabilities.

While specific margin projections weren't disclosed, the emphasis on owned brands (Good & Gather, up&up) suggests continued focus on higher-margin product categories. The comprehensive strategy acknowledges shifting consumer behaviors while creating multiple pathways to profitable growth through enhanced digital capabilities, physical presence optimization, and expanded value-added services.

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

FAQ

What is Target's sales growth target by 2030?

Target aims to drive more than $15 billion in sales growth across its multi-channel business by 2030.

How many new stores is Target (TGT) planning to open?

Target plans to add over 300 stores over 10 years, with approximately 20 new stores planned for 2025.

What is Target's goal for its Target Plus marketplace by 2030?

Target aims to grow Target Plus marketplace sales from approximately $1 billion in 2024 to more than $5 billion by 2030.

How much value did Target's Roundel media company generate in 2024?

Target's in-house media company Roundel drove more than $2 billion in value last year.

What are Target's plans for its Target Circle 360 membership program?

Target aims to triple its Target Circle 360 membership base over the next three years through new perks, including a partnership with Marriott Bonvoy.