Target aims to drive $15 billion-plus in sales growth by 2030; plans include...
Target Corp. laid out an ambitious strategy to accelerate its growth — with plans that include "dramatically" expanding its third-party marketplace, enhancing its product assortments and opening new stores in 2025.
At a financial meeting on Tuesday in New York City, Target outlined its ongoing investments that aim to drive more than $15 billion in sales growth across its business by 2030. The discounter revealed its plans after it reported a solid fourth quarter, with better-than-expected earnings and sales, but warned of a rough first quarter.
[READ MORE: Target Q4 beats Street; sounds warning on impact of tariffs]
"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 Target CEO Brian Cornell. "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."
As part of its strategy, Target said it plans to “dramatically" expand the size of its marketplace and grow third-party digital sales from about $1 billion in 2024 to more than $5 billion in 2030, adding "hundreds" of new brands to the platform, such as Peloton and Honest Baby Clothing.
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
The retailer will also enhance its same-day delivery services and invest across its stores and supply chain network to reach more consumers and get products to them faster. Initiatives include:
•New stores and remodels: As part of its previously announced plan to add more than 300 stores over 10 years, Target plans to open around 20 new stores (with the majority being large formats) and remodeling "many more" in 2025. The retailer says expanding its brick-and-mortar footprint is part of growing its “store as hubs” e-commerce fulfillment strategy.
•Supply chain evolution:Target is also planning updates and expansions across its supply chain network, including 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.
•Reimagining key categories: Starting in 2025, Target will begin a multi-year initiative that will build momentum in product categories with growth potential, including expanding its gaming, sports and toys assortments.
•Owned brands: Target is also looking to grow its owned brands through such initiatives as a new series of Good & Gather Collabs with celebrated chefs. It also plans to debut 600 new food and beverage items across its Good & Gather and Favorite Day private label brands, and revamp its pet supplies brand.
•New partnerships: In recent weeks, the retailer entered into a partnership with Champion for a 500-piece line of activewear, accessories and sporting goods for adults and goods. It also plans to open in-store shops offering eyewear and vision exams through a partnership with Warby Parker.
•New Target Circle benefits: Target aims to triple the membership base of its loyalty program over the next three years through new perks, benefits and other enhancements, includes a partnership with Marriott Bonvoy to make traveling "even easier and more rewarding" for Target Circle 360 members.
On the technology front, Target said it 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.
