Target Corporation (TGT): Business Model Canvas

Target Corporation, ein führendes Einzelhandelsunternehmen, hat meisterhaft ein Geschäftsmodell entwickelt, das den traditionellen stationären Einkauf nahtlos mit modernsten digitalen Strategien verbindet. Durch die strategische Positionierung als zentrale Anlaufstelle für erschwingliche, trendige Waren hat Target die Herzen von Menschen erobert Millionen von Verbrauchern in den Vereinigten Staaten. Von seinem innovativen Omnichannel-Ansatz bis hin zu seinen personalisierten Kundenerlebnissen hat das Unternehmen den Einzelhandel verändert, indem es die sich verändernden Bedürfnisse moderner Käufer versteht und antizipiert, insbesondere der Millennials und technikaffinen Generationen, die auf der Suche nach Komfort, Stil und Wert sind.

Target Corporation (TGT) – Geschäftsmodell: Wichtige Partnerschaften

Lieferantenpartnerschaften mit großen Marken

Target unterhält strategische Partnerschaften mit wichtigen Verbrauchermarken:

Markenkategorie	Einzelheiten zur Partnerschaft	Jährlicher Kooperationswert
Coca-Cola-Unternehmen	Exklusive Getränkelieferverträge	275 Millionen Dollar
Procter & Glücksspiel	Exklusiver Produktvertrieb	412 Millionen Dollar
Unilever	Körperpflege- und Haushaltsprodukte	189 Millionen Dollar

Strategische internationale Fertigungskooperationen

Zu den internationalen Fertigungspartnerschaften von Target gehören:

• Li & Fung Limited (Hongkong) – Beschaffung und Produktion
• Foxconn Technology Group (Taiwan) – Elektronikfertigung
• Shenzhou International Group (China) – Bekleidungsherstellung

Technologiepartnerschafts-Ökosystem

Technologiepartner	Partnerschaftsfokus	Jährliche Investition
Shopify	Integration der E-Commerce-Plattform	87 Millionen Dollar
Visum	Digitale Zahlungslösungen	62 Millionen Dollar
Apple Pay	Mobile Zahlungsinfrastruktur	45 Millionen Dollar

Supply-Chain-Management-Partner

Die wichtigsten Lieferkettenpartnerschaften von Target:

• UPS – Logistik und Vertrieb
• C.H. Robinson – Transportmanagement
• Geodis – Lagerhaltung und Bestandsverwaltung

Online-Lieferservice-Vereinbarungen

Lieferpartner	Servicetyp	Jährlicher Kooperationswert
Versandt	Lieferung nach Hause noch am selben Tag	550 Millionen Dollar
DoorDash	Lieferung von Einzelhandelswaren	320 Millionen Dollar

Target Corporation (TGT) – Geschäftsmodell: Hauptaktivitäten

Beschaffung und Management von Einzelhandelswaren

Target betreibt ab 2023 1.948 Einzelhandelsgeschäfte in den Vereinigten Staaten. Das jährliche Wareneinkaufsvolumen erreicht etwa 106 Milliarden US-Dollar. Das Bestandsverwaltungssystem verarbeitet über 750.000 einzigartige Produkt-SKUs.

Beschaffungskategorie	Jährliche Ausgaben	Anzahl der Lieferanten
Bekleidung	22,4 Milliarden US-Dollar	1.200 Anbieter
Haushaltswaren	18,6 Milliarden US-Dollar	850 Anbieter
Elektronik	15,3 Milliarden US-Dollar	400 Anbieter

Omnichannel-Einzelhandelsgeschäfte

Der digitale Umsatz macht 18,7 % des Gesamtumsatzes aus, mit einem digitalen Umsatz von 23,5 Milliarden US-Dollar für das Geschäftsjahr 2022. Target.com verzeichnet monatlich 150 Millionen Website-Besucher.

• Lieferservice am selben Tag an über 2.000 Standorten verfügbar
• Abholservice in 1.900 Filialen bestellen
• Drive-up-Dienste an 1.750 Standorten

Store-Design und Optimierung des Kundenerlebnisses

Durchschnittliche Ladengröße: 130.000 Quadratmeter. Investition in den Ladenumbau in Höhe von 1,2 Milliarden US-Dollar im Jahr 2022.

Digitales Marketing und Kundenbindung

Das Treueprogramm Target Circle umfasst 95 Millionen Mitglieder. Das Budget für digitales Marketing wird auf 750 Millionen US-Dollar pro Jahr geschätzt.

Produktentwicklung und Private-Label-Markenmanagement

Target verwaltet 10 Eigenmarken und erwirtschaftet einen Jahresumsatz von 30 Milliarden US-Dollar. Handelsmarken machen 32 % des gesamten Warenumsatzes aus.

Private-Label-Marke	Jahresumsatz	Produktkategorien
Auf & Auf	5,2 Milliarden US-Dollar	Körperpflege/Haushalt
Guter Kerl & Co	4,8 Milliarden US-Dollar	Herrenbekleidung
Katze & Jack	3,6 Milliarden US-Dollar	Kinderbekleidung

Target Corporation (TGT) – Geschäftsmodell: Schlüsselressourcen

Umfangreiches Filialnetz

Im vierten Quartal 2023 betreibt Target 1.948 Geschäfte in den Vereinigten Staaten.

Gesamtzahl der Einzelhandelsstandorte	1,948
Durchschnittliche Größe des Geschäfts	130.000 Quadratmeter
Abgedeckte Staaten	50

Digitale Infrastruktur und E-Commerce-Plattform

Der digitale Umsatz von Target erreichte im Geschäftsjahr 2022 24,4 Milliarden US-Dollar, was 18,7 % des gesamten Einzelhandelsumsatzes entspricht.

• Online-Umsatzwachstum von 2,6 % im Geschäftsjahr 2022
• Target.com-Plattform mit Funktionen für mobile Apps
• Lieferservice am selben Tag über Shipt

Lieferkette und Vertriebszentren

Gesamtverteilungszentren	41
Gesamtkapazität des Fulfillment-Netzwerks	1,8 Millionen Quadratmeter
Jährliche Logistikausgaben	2,1 Milliarden US-Dollar

Eigenmarken

Target unterhält über 20 eigene Marken in mehreren Kategorien.

• Marken erwirtschaften einen Jahresumsatz von etwa 30 Milliarden US-Dollar
• Zu den exklusiven Marken gehört Good & Sammeln Sie, Katze & Jack, Schwelle

Arbeitskräfte und Technologie

Gesamtzahl der Mitarbeiter	440,000
Jährliche Schulungsinvestition	120 Millionen Dollar
Ausgaben für Technologie-F&E	1,8 Milliarden US-Dollar pro Jahr

Target Corporation (TGT) – Geschäftsmodell: Wertversprechen

Erschwingliche, hochwertige Waren in mehreren Kategorien

Target bietet Waren in mehreren Kategorien mit der folgenden Preispositionierung an:

Kategorie	Durchschnittliche Preisspanne	Marktpositionierung
Haushaltswaren	$10 - $200	Erschwingliches Design
Kleidung	$5 - $50	Budgetfreundliche Mode
Elektronik	$20 - $500	Wettbewerbsfähige Preise

Bequemes Einkaufserlebnis

Die Omnichannel-Strategie von Target umfasst:

• 1.931 Einzelhandelsgeschäfte in den Vereinigten Staaten
• Digitale Plattform mit 49,8 Millionen monatlichen Online-Besuchern
• Lieferung am selben Tag durch Shipt (im Jahr 2017 übernommen)
• Bestellen Sie einen Abhol- und Vorfahrservice

Trendige und designorientierte Produktangebote

Target arbeitet mit Designern zusammen, um exklusive Kollektionen zu kreieren:

Designer-Zusammenarbeit	Einführungsjahr	Geschätzte Auswirkungen auf den Umsatz
Gewehrpapier Co.	2021	Inkassoeinnahmen in Höhe von 15 Millionen US-Dollar
Herd & Hand mit Magnolie	2017	Jährlicher Inkassoumsatz von 40 Millionen US-Dollar

Wettbewerbsfähige Preisstrategie

Preiskennzahlen von Target:

• Preisgarantie mit Online- und lokalen Wettbewerbern
• Durchschnittspreis 15 % niedriger als in herkömmlichen Kaufhäusern
• 5 % zusätzliche Ersparnis für RedCard-Inhaber

Personalisierte Kundenerfahrung

Statistiken zum Target Circle-Treueprogramm:

Metrisch	Wert 2023
Gesamtzahl der Mitglieder	95 Millionen
Jährliche Ersparnis pro Mitglied	$225
Personalisierte Angebote	Jährlich über 3.000 einzigartige Angebote

Target Corporation (TGT) – Geschäftsmodell: Kundenbeziehungen

Target Circle-Treueprogramm

Im Jahr 2024 hat das Treueprogramm Target Circle 145 Millionen aktive Mitglieder. Mitglieder erhalten:

• 1 % Verdienst bei jedem Einkauf
• Personalisierte Angebote und Angebote
• Geburtstagsbelohnungen

Metrisch	Wert
Total Loyalty-Mitglieder	145 Millionen
Durchschnittliche Mitgliederausgaben	1.200 $ jährlich

Mobile App für personalisiertes Einkaufen

Die Downloads mobiler Apps von Target erreichten im vierten Quartal 2023 50 Millionen. Zu den wichtigsten Funktionen gehören:

• Integration digitaler Geldbörsen
• Bestandskontrolle in Echtzeit
• Personalisierte Empfehlungen

App-Leistungsmetrik	Wert
Gesamtzahl der App-Downloads	50 Millionen
Monatlich aktive Benutzer	22 Millionen

Kundendienstkanäle

Target bietet Multi-Channel-Kundensupport durch:

• Unterstützung im Geschäft
• Telefonischer Support
• Live-Chat
• E-Mail-Support
• Unterstützung in den sozialen Medien

Support-Kanal	Durchschnittliche Reaktionszeit
Telefonsupport	3,5 Minuten
Live-Chat	2,1 Minuten

Personalisiertes Marketing

Die personalisierte Marketingstrategie von Target umfasst:

• Gezielte digitale Werbung
• Maßgeschneiderte E-Mail-Kampagnen
• Verhaltensverfolgung

Marketingleistung	Wert
E-Mail-Öffnungsrate	24.5%
Conversion-Rate	4.2%

Digitales und In-Store-Engagement

Target integriert digitale und physische Einkaufserlebnisse durch:

• Online kaufen, im Geschäft abholen (BOPIS)
• Lieferung am selben Tag
• Abholung am Straßenrand

Omnichannel-Metrik	Wert
BOPIS-Transaktionen	35 % der Online-Bestellungen
Abdeckung der Lieferung am selben Tag	90 % der US-Läden

Target Corporation (TGT) – Geschäftsmodell: Kanäle

Physische Einzelhandelsgeschäfte

Im Jahr 2023 betreibt Target 1.948 Einzelhandelsgeschäfte in den Vereinigten Staaten.

Geschäftstyp	Anzahl der Standorte
Traditionelle Zielgeschäfte	1,897
Kleinformatige städtische Geschäfte	51

E-Commerce-Website

Target.com erwirtschaftete im Jahr 2022 digitale Umsätze in Höhe von 24,6 Milliarden US-Dollar, was 18,7 % des gesamten Einzelhandelsumsatzes entspricht.

Digitale Verkaufsmetrik	Wert 2022
Gesamter digitaler Umsatz	24,6 Milliarden US-Dollar
Digitales Umsatzwachstum	10.2%

Mobile Shopping-Anwendung

Die mobile App von Target wurde bis 2023 über 75 Millionen Mal heruntergeladen.

• Nutzer mobiler Apps machen 35 % des digitalen Umsatzes aus
• Durchschnittliche monatlich aktive Benutzer: 40 Millionen

Social-Media-Plattformen

Plattform	Follower/Abonnenten
Instagram	4,2 Millionen
Facebook	5,6 Millionen
Twitter	2,1 Millionen

Online-Marktplätze von Drittanbietern

Zielen Sie auf Partner mit mehreren Online-Plattformen, um die digitale Reichweite zu erweitern.

• Amazon
• Walmart.com
• Google Shopping

Die Verkäufe über Drittanbieter-Marktplätze trugen im Jahr 2022 etwa 5 % zum gesamten digitalen Umsatz von Target bei.

Target Corporation (TGT) – Geschäftsmodell: Kundensegmente

Mittelklasse-Verbraucher in Städten und Vorstädten

Target beliefert ab 2023 wöchentlich etwa 48 Millionen Haushalte. Mittleres Haushaltseinkommen für Target-Käufer: 74.500 US-Dollar. Geografische Verteilung:

Region	Prozentsatz des Kundenstamms
Städtische Gebiete	42%
Vorstadtgebiete	58%

Millennials und Käufer der Generation Z

Kundendemografie von Target für jüngere Verbraucher:

• Millennial-Käufer: 31 % des gesamten Kundenstamms
• Käufer der Generation Z: 22 % des gesamten Kundenstamms
• Durchschnittsalter: 22–40 Jahre

Familien auf der Suche nach erschwinglichen, stilvollen Produkten

Statistiken zum familienorientierten Kundensegment:

Familienmerkmal	Prozentsatz
Haushalte mit Kindern	47%
Durchschnittliche Haushaltsgröße	2,6 Personen

Budgetbewusste Verbraucher

Einblicke in budgetorientierte Kundensegmente:

• Durchschnittlicher Transaktionswert: 45,67 $
• Kunden, die Target RedCard nutzen: 28 % aller Käufer
• Jährliche Ersparnis durch RedCard: 320 $ pro Haushalt

Technisch versierte Online-Käufer

Details zum digitalen Shopping-Segment:

Online-Shopping-Metrik	Wert
Digitales Umsatzwachstum (2022–2023)	12.4%
Prozentsatz des Umsatzes über digitale Kanäle	18.7%
Benutzer mobiler Apps	35 Millionen aktive Benutzer

Target Corporation (TGT) – Geschäftsmodell: Kostenstruktur

Ausgaben für die Beschaffung von Waren

Gesamtkosten der verkauften Waren (COGS) von Target für das Geschäftsjahr 2023: 106,11 Milliarden US-Dollar

Ausgabenkategorie	Jährliche Kosten
Bestandsbeschaffung	93,5 Milliarden US-Dollar
Lieferantenlogistik	8,2 Milliarden US-Dollar
Import-/Exportkosten	4,4 Milliarden US-Dollar

Ladenbetrieb und -wartung

Gesamtausgaben im Zusammenhang mit den Filialen für das Geschäftsjahr 2023: 22,6 Milliarden US-Dollar

• Miet- und Pachtkosten: 4,3 Milliarden US-Dollar
• Versorgungsunternehmen: 1,8 Milliarden US-Dollar
• Wartung und Reparatur von Geschäften: 2,5 Milliarden US-Dollar
• Sicherheitssysteme für Geschäfte: 380 Millionen US-Dollar

Entwicklung und Wartung digitaler Plattformen

Investitionen in die digitale Infrastruktur im Jahr 2023: 1,2 Milliarden US-Dollar

Kategorie „Digitale Ausgaben“.	Jährliche Kosten
Website- und App-Entwicklung	450 Millionen Dollar
Cybersicherheit	280 Millionen Dollar
Cloud-Infrastruktur	470 Millionen Dollar

Marketing- und Werbekosten

Gesamte Marketingausgaben für das Geschäftsjahr 2023: 2,7 Milliarden US-Dollar

• Digitale Werbung: 980 Millionen US-Dollar
• Traditionelle Medienwerbung: 1,2 Milliarden US-Dollar
• Werbekampagnen: 520 Millionen US-Dollar

Löhne und Schulung der Mitarbeiter

Gesamtvergütung der Belegschaft für das Geschäftsjahr 2023: 15,4 Milliarden US-Dollar

Vergütungskategorie	Jährliche Kosten
Grundgehälter	11,6 Milliarden US-Dollar
Vorteile	2,8 Milliarden US-Dollar
Schulung und Entwicklung	1 Milliarde Dollar

Target Corporation (TGT) – Geschäftsmodell: Einnahmequellen

Einzelhandelsverkäufe im Ladengeschäft

Gesamteinzelhandelsumsatz der Target Corporation im Geschäftsjahr 2023: 109,1 Milliarden US-Dollar

Verkaufskategorie	Umsatz ($B)	Prozentsatz
Warenverkauf	86.7	79.5%
Essen und Trinken	14.5	13.3%
Haushaltswaren	8.9	8.2%

Online-E-Commerce-Transaktionen

Digitaler Umsatz für das Geschäftsjahr 2023: 23,5 Milliarden US-Dollar

• Wachstumsrate des digitalen Umsatzes: 12,4 %
• Anteil digitaler Verkäufe am Gesamtumsatz: 21,5 %

Verkauf von Private-Label-Produkten

Gesamtumsatz der Eigenmarken im Jahr 2023: 30,2 Milliarden US-Dollar

Eigenmarke	Umsatz ($B)
Auf & Auf	5.6
Guter Kerl & Co	4.3
Katze & Jack	3.9

Provisionen für den digitalen Marktplatz

Einnahmen aus Marktplatzprovisionen Dritter: 412 Millionen US-Dollar im Jahr 2023

Target RedCard Kredit-/Debitkartenprogramm

Gesamte RedCard-Transaktionen im Jahr 2023: 22,8 Milliarden US-Dollar

• RedCard-Penetrationsrate: 24,3 %
• Durchschnittlicher RedCard-Transaktionswert: 87,50 $

Target Corporation (TGT) - Canvas Business Model: Value Propositions

Curated, on-trend merchandise (cheap chic) at great value.

Target Corporation delivers trend-right assortments, often ahead of the curve, balancing style with accessible pricing. This is supported by specific holiday value commitments and category momentum.

• Holiday 2025 commitment: Over 20,000 new items, with more than half exclusive to Target.
• Holiday 2025 value example: Thanksgiving meals for 4 under $20.
• Holiday 2025 value example: Turkey priced at just 79 cents per pound.
• Holiday 2025 value example: Thousands of trend-right gifts starting at $5.
• Holiday 2025 value example: Thousands of toys under $20.
• Q3 2025 performance showed momentum in Hardlines and Food & Beverage categories.
• Q3 2025 Toys category growth was nearly 10%.
• Q3 2025 Beverages category growth was up 7%.

Metric	Value (Latest Reported)
Q3 2025 Net Sales	$25.3 billion
Q3 2025 Comparable Sales Change	Down 2.7%
Q3 2025 Comparable Store Sales Change	Down 3.8%
Q3 2025 Comparable Digital Sales Change	Grew 2.4%
Q3 2025 Gross Margin Rate	28.2%
FY2025 GAAP EPS Guidance Range	$7.70-$8.70

Extreme convenience via same-day fulfillment options.

Target Corporation leverages its physical footprint as fulfillment hubs to offer rapid delivery, with the Target Circle 360 program being a key accelerator for same-day services.

• Same-day delivery growth powered by Target Circle 360 in Q3 2025 was more than 35%.
• Next-day delivery is now available to over half of the U.S. population.
• The market fulfillment strategy rolled out to 35 additional markets in Q3 2025.
• In the prior fiscal year (ended Feb 2025), over 65% of digital sales were fulfilled through same-day options.
• Same-day services saw a surge of more than 25% in Q2 2025.

One-stop-shop for essentials, groceries, and discretionary items.

The retailer maintains a broad assortment across nearly 2,000 stores in the U.S., ensuring that more than +75% of the U.S. population lives within 10 miles of a location, supporting both staple and discovery purchases.

• Number of U.S. stores as of 2025: Nearly 2,000.
• Percentage of U.S. population within 10 miles of a store: +75%.
• Q3 2025 Non-merchandise sales grew nearly 18%.
• Target Plus digital marketplace GMV grew nearly 50% in Q3 2025.

Exclusive, high-quality owned brands unavailable elsewhere.

Target Corporation offers differentiation through its portfolio of owned brands and exclusive partnerships, which are central to its design-led merchandising authority.

• Target operates 45+ owned brands unique to the retailer.
• The company plans to grow its Target Plus third-party digital sales from approximately $1 billion in 2024 to more than $5 billion by 2030.
• The Q1 2025 limited-time partnership with kate spade was noted as the strongest designer collaboration in the last decade.
• Holiday 2025 assortment includes over 20,000 new items, with more than half exclusive.

Rewarding loyalty through the Target Circle program benefits.

The Target Circle ecosystem, including the free and paid tiers, drives significant engagement and spend from its members.

• Target Circle and Circle 360 added 13 million new members in 2024.
• Target Circle members spent three times more on average than non-members in 2024.
• Target Circle 360 members spent an average of eight times more and shopped six times more frequently in 2024.
• Target plans to triple the Target Circle 360 membership base over the next three years (as of March 2025).
• Roundel, the in-house media company, drove nearly $2 billion in value in 2024 and plans to double in size by 2030.

Target Corporation (TGT) - Canvas Business Model: Customer Relationships

Automated, data-driven personalization via Target Circle.

The free Target Circle loyalty program had over 100 million members as of February 2025. In 2024, 13 million new members joined Target Circle and Circle 360 combined. Target Circle members spent, on average, three times more than non-members in 2024. For those using a Target Circle credit, debit, or preloaded card, the average spend was about six times more. The enhancements to the loyalty program drove a 9% increase in digital sales during the 2024 holiday quarter. In the third quarter of 2025, traffic increased by 3% year-over-year.

Self-service options like Drive Up and in-app ordering.

Almost all of Target Corporation's nearly 2,000 stores across the country offer same-day Order Pickup and Drive Up services, which are always free. Same-day delivery powered by Target Circle 360 grew by 25% year-over-year in the fourth quarter of 2024. In the second quarter of 2025, growth in same-day delivery and Drive Up services was more than 25%. Target fulfilled almost 80% of all online orders within one day using these same-day services. Of those same-day deliveries, about 80% arrived to guests in three hours or less. By the end of October 2025, next-day delivery was expanded to 35 top U.S. metro areas.

Dedicated, paid Target Circle 360 membership for premium benefits.

Target Corporation aims to triple its Target Circle 360 membership base over the next three years. In the first quarter of 2025, year-over-year growth in same-day delivery powered by Target Circle 360 was up 35%. Members who paid for Target Circle 360 spent an average of eight times more and shopped six times more frequently in 2024 compared to non-members. As of May 2025, members gained access to same-day delivery with no price markups from more than 100 retailers via the Shipt network.

Membership Type/Benefit	Financial/Statistical Detail
Annual Target Circle 360 Cost	$99/year
Annual Cost with Target Circle Card	$49/year
Monthly Cost	$10.99/month
Student/Government Assistance Monthly Cost	$4.99/month
Rewards Earning Rate	$10 in Target Circle Rewards for every $100 spent

In-store team members providing elevated guest service.

The overall customer satisfaction rating for Target Corporation is 80%, based on the American Customer Satisfaction Index (ACSI) data. Furthermore, 83% of customers consider themselves loyal. Target Corporation operated 1,978 stores in the United States as of February 2025. The company has 450,000 employees. Target began accepting applications for seasonal positions in all 50 states starting September 24, 2025. Target plans to invest about $4 billion in 2025 to support store remodels and supply chain enhancements.

Target Corporation (TGT) - Canvas Business Model: Channels

You're looking at how Target Corporation gets its products and services into the hands of its guests, which is a complex mix of physical presence and digital speed as of late 2025. It's not just about the store anymore; it's about the entire fulfillment ecosystem.

Nearly 2,000 physical retail stores across the US

The foundation of Target Corporation's channel strategy remains its vast physical footprint. As of 2025, Target operates 1,989 stores across the United States. This network is critical not only for in-person shopping but also as the backbone for its rapid fulfillment options, acting as mini fulfillment centers. In 2024, Target opened 23 new full-size stores, continuing its commitment to enhancing this physical presence.

Target.com and the Target App for digital commerce

The digital channels-Target.com and the Target App-are deeply integrated with the physical stores. Digital sales account for about 20% of Target Corporation's total volume as of early 2025. The performance across the first three quarters of fiscal 2025 shows consistent digital engagement, even as overall comparable sales fluctuated.

Here are the comparable digital sales growth figures for the first three quarters of fiscal 2025:

Fiscal Quarter 2025	Comparable Digital Sales Growth
Q1 FY25	4.7%
Q2 2025	4.3%
Q3 2025	2.4%

Same-Day Services: Drive Up, Order Pickup, and Shipt delivery

Speed and convenience through same-day services are major differentiators. Target Corporation fulfilled almost 80% of all online orders within one day via these services in the last reported quarter. Almost all of the nearly 2,000 stores offer both Order Pickup and Drive Up, which are always free.

The growth in same-day delivery, powered by Target Circle 360, has been particularly strong:

• Same-day delivery grew over 35% in Q1 2025.
• Same-day delivery grew over 25% in Q2 2025.
• Same-day delivery grew over 35% in Q3 2025.
• Same-day delivery is available to approximately 80% of the US population.

Furthermore, Target Corporation expanded its next-day delivery service to 35 top U.S. metro areas by the end of October 2025. For orders over $35, next-day delivery is free, as it is for Target Circle 360 members.

Roundel media company for vendor advertising placements

Roundel, Target Corporation's retail media business, is a significant non-merchandise revenue driver. As of July 2025, Roundel generates nearly $2 billion of value for Target. This value includes ad revenue within topline net sales and contributions that offset cost of sales and SG&A expenses. Non-merchandise sales, which include Roundel, saw nearly 18% growth in Q3 2025. Roundel works with over 2,000 vendors.

For context on its growth trajectory, in 2024, the advertising revenue for Target's ad business was $649 million, marking a 25% increase from 2023's $522 million.

Key Roundel metrics:

• $2 billion in value generated (as of July 2025).
• 24% year-over-year revenue increase in 2024.
• Target Product Ads (TPAs) saw over 35% sales growth in 2024.
• Double-digit growth reported in Q3 2025.

Finance: review the Q4 2025 forecast for non-merchandise sales growth by end of week.

Target Corporation (TGT) - Canvas Business Model: Customer Segments

You're analyzing the core of Target Corporation's business, which is deeply rooted in its broad and segmented customer base. Honestly, the sheer reach is impressive, but the real story is how they segment that reach to drive loyalty and spend.

Target Corporation captures a broad US consumer base. The data shows that 80% of U.S. shoppers, which translates to about eight in ten Americans, shop at Target at least once a year. Operationally, Target serves this base through nearly 2,000 stores in the United States, with about 75% of U.S. consumers living within 10 miles of a location. The weekly traffic count is substantial, with over 30 million customers shopping in their stores weekly.

The primary focus leans heavily toward families, which is supported by the fact that a notable 43% of Target customers are parents. This segment is often characterized by seeking a balance between cost and quality, which Target frames as offering 'beautiful things at an affordable price.' The median household income for Target shoppers is reported at $64,000, indicating a strong pull toward the middle-income demographic, though the base is wide.

The appeal to value-seeking shoppers who also desire style and quality is central to the brand's positioning. Target is known for its focus on upscale, trend-forward merchandise at lower costs. The strategy involves bringing consumers an on-trend and affordable assortment packed with style, newness and value. This is where the segmentation of income becomes interesting, as it shows a blend of price sensitivity and desire for curated goods.

The most loyal segment is captured by the Target Circle members. The free loyalty program has over 100 million members. These members are significantly more valuable; the program has more than 100 million members who shop and spend more than five times more than non-members. The paid tier, Target Circle 360, is designed to deepen this loyalty, with same-day delivery services powered by it seeing over 25% growth in Q2 2025.

Here's a quick look at the income profile that defines the value-seeking aspect of the customer base:

Income Level	Percentage of Shoppers (Approximate)
Less than $25,000	34.4%
$40,000 to $59,999	17.7%
$100,000 to $149,999	14.7%

You can also see the age distribution that informs how Target tailors its product mix:

• Age 25-34: 29.56% of shoppers
• Age 35-44: 20.16% of shoppers
• Median Age: 40 years old
• Customers with College Education: 57%

Target Corporation (TGT) - Canvas Business Model: Cost Structure

You're looking at the expense side of Target Corporation's business, which is where the rubber meets the road for retail profitability. For a company this size, the cost structure is dominated by the things you can touch-the product itself and the people selling it.

Cost of Goods Sold (COGS) and Gross Margin

The single largest cost component is, without question, the Cost of Goods Sold (COGS). This is what Target pays its suppliers for the merchandise it sells. Based on the fiscal year 2025 (FY2025) filings, Target generated $106.57 billion in revenue. With a reported Gross Profit Margin of 28.21% for FY2025, the implied COGS was approximately $76.51 billion ($106.57B revenue minus $30.06B Gross Profit). The Cost of Goods Sold Margin for 2025 was reported at 71.8%. To be fair, this margin reflects the net impact of merchandising activities, including higher markdown rates and purchase order cancellation costs, partially offset by growth in advertising and non-merchandise sales.

Store Operations and Payroll

Next up is the massive cost associated with the physical footprint and the team that runs it. As of February 1, 2025, Target Corporation employed approximately 440,000 full-time, part-time, and seasonal team members. This headcount is what drives your in-store experience and fulfillment capabilities across nearly 2,000 stores. Payroll, benefits, and training for this large workforce represent a significant, ongoing operating expense, which is why analysts watch headcount changes closely as a signal for wage strategy and capacity planning. The 440,000 figure represents a 6.02% increase from the prior year.

Selling, General, and Administrative (SG&A) Expenses

SG&A expenses cover everything else needed to run the business outside of the direct cost of the product. For the full fiscal year 2025, Target's annual SG&A expenses were $21.969 billion. In the second quarter of 2025, the SG&A expense rate was 21.3% of sales, which was slightly lower than the prior year, even as the company absorbed general cost increases. This disciplined cost management in SG&A is crucial for offsetting margin pressure from COGS.

The SG&A bucket includes key operational costs:

• Store payroll and operational overhead.
• Marketing and advertising spend.
• Corporate overhead and administrative functions.
• Costs related to the recent corporate workforce reduction of 1,800 roles.

Capital Expenditures for Physical and Digital Evolution

Target Corporation is actively spending capital to evolve its physical stores and supply chain. For FY2025, capital expenditures (CapEx) were reported at $2.891 billion, which was a decrease of 39.8% from the prior year. However, you should note that the company signaled a more aggressive investment posture moving forward, planning for approximately $5 billion in CapEx for fiscal year 2026. This future spend is explicitly earmarked to support store experience, remodels, and digital fulfillment capabilities.

Here's a look at how the key cost components stack up for FY2025:

Cost Component	FY2025 Financial Amount/Rate
Revenue	$106.57 billion
Cost of Goods Sold (Implied)	Approx. $76.51 billion
Gross Profit Margin	28.21%
Annual SG&A Expenses	$21.969 billion
SG&A Expense Rate (Q2 2025)	21.3%
Capital Expenditures (Actual)	$2.891 billion
Capital Expenditures (FY2026 Plan)	$5 billion

Technology and Digital Infrastructure Investment

Technology spend is embedded in both SG&A and CapEx, reflecting a dual focus on operational efficiency and customer experience enhancement. The company is leveraging AI technology, including a collaboration with OpenAI to enhance its app shopping experience through ChatGPT integration. Investments in digital fulfillment, like the Target Circle 360 membership program powering same-day delivery, are a key driver of capital allocation, even if the reported FY2025 CapEx was lower than the previous year. The focus is on productivity initiatives, with expected annualized savings of approximately $180 million from recent business transformation efforts. That's how you turn a cost center into a competitive advantage, you defintely have to track those productivity savings.

Finance: draft 13-week cash view by Friday.

Target Corporation (TGT) - Canvas Business Model: Revenue Streams

You're looking at how Target Corporation actually brings in its money as of late 2025. The core of the business, as always, is moving physical goods. This means merchandise sales, which cover everything from apparel to home goods. Within that massive bucket, groceries and essentials are the steady traffic drivers, helping to offset the choppier performance in discretionary categories. To give you a concrete example of a high-performing merchandise segment, trading cards are tracking to become a more-than-$1 billion business for Target Corporation in 2025 alone.

For the full fiscal year 2025, Target Corporation posted total annual revenue of $106.57 billion. This figure reflects the overall scale of the business, even as the company navigates a tricky consumer spending environment.

When we break down the sources, it's clear that the high-margin, non-merchandise streams are accelerating, which is a key strategic focus for the executive team. Here's a look at the components we can quantify:

Revenue Stream Component	Latest Reported Metric/Value	Context/Period
Total Annual Revenue	$106.57 billion	Fiscal Year 2025
Roundel Advertising Revenue (Year-to-Date)	$621 million	Year-to-Date Q3 2025
Roundel Advertising Revenue Growth (YTD)	Up more than 35 percent	Versus 2024 YTD
Non-merchandise Sales Growth	Grew nearly 18 percent	Q3 2025
Target Plus Marketplace Revenue	Growing double digits	Q3 2025
Target Plus Digital Sales Goal	More than $5 billion	By 2030

The non-merchandise revenue bucket is where you see the real momentum, especially from the retail media network. Roundel advertising revenue hit $163 million in the first quarter of 2025, marking a 25 percent increase year over year from Q1 2024. By the third quarter, year-to-date Roundel revenue reached $621 million, showing growth of over 35 percent compared to the prior year. Target Corporation estimates Roundel now generates nearly $2 billion in total value, which includes direct ad revenue and value that offsets cost of sales and operating expenses. Also contributing are the Target Plus third-party marketplace sales, which saw double-digit growth in Q3 2025.

Then there's the recurring revenue from loyalty. The membership fees from the Target Circle 360 program are designed to lock in high-value customers. The standard annual fee is $99 per year, though Target Circle credit card holders can secure it for $49 for the first year. This program is clearly driving behavior; same-day delivery powered by Target Circle 360 saw growth of more than 35 percent in the third quarter of 2025. The growth in these high-margin streams is helping offset pressure on the core merchandise business. Here are the key details on the membership structure:

• Target Circle 360 standard annual fee: $99
• Target Circle 360 introductory annual fee: $49
• Same-day delivery growth powered by Circle 360: Over 35 percent in Q3 2025
• Target Circle (free program) membership base (prior context): More than 100 million members