Target Unveils Multi-Step Revitalization Plan
Following a lackluster fourth quarter, which included the 2024 holiday shopping season, and full-year results that were flat year-over-year, Target is implementing “strategic plans” the retailer claims will drive $15 billion in sales growth by the end of the decade.
The multi-pronged plan includes enhancements to its product assortment, investments in technology, store remodels, and continued evolution to its supply chain.
Brian Cornell, chair and CEO of Target, said the new strategy is about creating a modern “Tarzhay” that offers consumers everyday discovery and delight.
"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," he said. "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.
On the product side, continued owned brand innovation is a key component of the retailer’s strategy. This includes the launch of Good & Gather Collabs with celebrated chefs, which is 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.
Additionally, Target will refresh proprietary brands such as Hearth & Hand with Magnolia and Threshold designed with Studio McGee, adding trend-forward newness to both.
Other key elements include:
• 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.
Target said it will also expand the use of technology to help shoppers find the products they need. This includes enhancements to search, social and data-driven personalization and enhancing solutions powered by artificial intelligence (AI) that offer more relevant product recommendations, optimize search results and integrate with social media trends.
The size of the Target Plus marketplace will also grow with the goal of expanding third-party sales from $1 billion last year to $5 billion in 2030.
On the store front, in 2025 Target plans to open 20 new stores, the majority of large formats, and invest to remodel others across the country. A specific number of remodel projects was not made available.
The retailer will also update and expand its supply chain network by adding AI-powered solutions to its core inventory management system. Several new package delivery solutions will also be added by leveraging existing stores and supply chain assets and its Shipt capability, with the goal of improving delivery speed to consumers.
With more than 13 million Target Circle members, Target aims to triple that number over the next three years by offering new perks and benefits. That includes a new partnership with Marriott Bonvoy to make traveling even easier and more rewarding for Target Circle 360 members.
