Target Corporation (TGT): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Target Corporation, una potencia minorista, ha creado magistralmente un modelo de negocio que combina las compras tradicionales de ladrillo y mortero con estrategias digitales de vanguardia. Al posicionarse estratégicamente como un destino único para mercancías asequibles y modernas, Target ha capturado los corazones de millones de consumidores en los Estados Unidos. Desde su innovador enfoque omnicanal hasta sus experiencias personalizadas de clientes, la compañía ha transformado el comercio minorista al comprender y anticipar las necesidades evolutivas de los compradores modernos, particularmente los millennials y las generaciones expertas en tecnología que buscan conveniencia, estilo y valor.

Target Corporation (TGT) - Modelo de negocio: asociaciones clave

Asociaciones de proveedores con las principales marcas

Target mantiene asociaciones estratégicas con marcas de consumidores clave:

Categoría de marca	Detalles de la asociación	Valor de colaboración anual
Compañía Coca-Cola	Acuerdos exclusivos de suministro de bebidas	$ 275 millones
Supervisar & Jugar	Distribución exclusiva del producto	$ 412 millones
Uneilever	Cuidado personal y productos para el hogar	$ 189 millones

Colaboraciones estratégicas de fabricación internacional

Las asociaciones internacionales de fabricación de Target incluyen:

• Li & Fung Limited (Hong Kong) - Abastecimiento y producción
• Foxconn Technology Group (Taiwán) - fabricación electrónica
• Shenzhou International Group (China) - Manufactura de ropa

Ecosistema de asociación tecnológica

Socio tecnológico	Enfoque de asociación	Inversión anual
Shop	Integración de la plataforma de comercio electrónico	$ 87 millones
Visa	Soluciones de pago digital	$ 62 millones
Apple Pay	Infraestructura de pago móvil	$ 45 millones

Socios de gestión de la cadena de suministro

Asociaciones críticas de la cadena de suministro de Target:

• UPS - Logística y distribución
• C.H. Robinson - Gestión del transporte
• Geodis - Gestión de almacenamiento e inventario

Acuerdos de servicio de entrega en línea

Socio de entrega	Tipo de servicio	Valor de colaboración anual
Buque	Entrega a domicilio el mismo día	$ 550 millones
Doordash	Entrega de mercancías minoristas	$ 320 millones

Target Corporation (TGT) - Modelo de negocio: actividades clave

Adquisición y gestión de mercancías minoristas

Target opera con 1,948 tiendas minoristas en los Estados Unidos a partir de 2023. El volumen anual de adquisición de mercancías alcanza aproximadamente $ 106 mil millones. El sistema de gestión de inventario procesa más de 750,000 SKU de productos únicos.

Categoría de adquisición	Gasto anual	Conteo de proveedores
Vestir	$ 22.4 mil millones	1.200 vendedores
Artículos para el hogar	$ 18.6 mil millones	850 proveedores
Electrónica	$ 15.3 mil millones	400 proveedores

Operaciones minoristas omnicanal

Las ventas digitales representan el 18.7% de los ingresos totales, con $ 23.5 mil millones en ventas digitales para el año fiscal 2022. Target.com recibe 150 millones de visitantes mensuales del sitio web.

• Servicios de entrega el mismo día disponibles en más de 2,000 ubicaciones
• Pedir servicios de recogida en 1.900 tiendas
• Servicios de salida en 1.750 ubicaciones

Diseño de la tienda y optimización de la experiencia del cliente

Tamaño promedio de la tienda: 130,000 pies cuadrados. Inversión de remodelación de la tienda de $ 1.2 mil millones en 2022.

Marketing digital y compromiso del cliente

El programa de lealtad del círculo objetivo incluye 95 millones de miembros. Presupuesto de marketing digital estimado en $ 750 millones anuales.

Desarrollo de productos y gestión de marca de etiqueta privada

Target administra 10 marcas patentadas que generan $ 30 mil millones en ingresos anuales. Las marcas de etiqueta privada representan el 32% de las ventas totales de mercancías.

Marca de etiqueta privada	Ingresos anuales	Categorías de productos
Arriba & Arriba	$ 5.2 mil millones	Cuidado personal/hogar
Goodfellow & Co	$ 4.8 mil millones	Ropa para hombres
Gato & Jacobo	$ 3.6 mil millones	Ropa para niños

Target Corporation (TGT) - Modelo de negocio: recursos clave

Extensa red de tiendas minoristas

A partir del cuarto trimestre de 2023, Target opera 1.948 tiendas en los Estados Unidos.

Ubicaciones minoristas totales	1,948
Tamaño promedio de almacenamiento	130,000 pies cuadrados
Estados cubiertos	50

Infraestructura digital y plataforma de comercio electrónico

Las ventas digitales de Target llegaron a $ 24.4 mil millones en el año fiscal 2022, lo que representa el 18.7% de las ventas minoristas totales.

• Crecimiento de ventas en línea del 2.6% en el año fiscal 2022
• Plataforma Target.com con capacidades de aplicaciones móviles
• Servicios de entrega el mismo día a través de Shipt

Centros de cadena de suministro y distribución

Centros de distribución totales	41
Capacidad de red de cumplimiento total	1.8 millones de pies cuadrados
Gasto logístico anual	$ 2.1 mil millones

Marcas patentadas

Target mantiene más de 20 marcas propias en múltiples categorías.

• Las marcas generan aproximadamente $ 30 mil millones en ingresos anuales
• Las marcas exclusivas incluyen Good & Reunir, gato & Jack, umbral

Fuerza laboral y tecnología

Total de empleados	440,000
Inversión de capacitación anual	$ 120 millones
Gastos de I + D	$ 1.8 mil millones anualmente

Target Corporation (TGT) - Modelo de negocio: propuestas de valor

Mercancía asequible y de alta calidad en múltiples categorías

Target ofrece mercancía en múltiples categorías con el siguiente posicionamiento de precios:

Categoría	Rango de precios promedio	Posicionamiento del mercado
Artículos para el hogar	$10 - $200	Diseño asequible
Ropa	$5 - $50	Moda presupuestaria
Electrónica	$20 - $500	Fijación de precios competitivos

Experiencia de compra conveniente

La estrategia omnicanal de Target incluye:

• 1.931 tiendas minoristas en los Estados Unidos
• Plataforma digital con 49.8 millones de visitantes en línea mensuales
• Entrega el mismo día a través de Shipt (adquirido en 2017)
• Pedir servicios de recolección y salida

Ofertas de productos modernas y centradas en el diseño

El objetivo colabora con los diseñadores para crear colecciones exclusivas:

Colaboración de diseñadores	Año de lanzamiento	Impacto de ingresos estimado
Rifle Paper Co.	2021	Ingresos por cobro de $ 15 millones
Hogar & Mano con magnolia	2017	Ingresos anuales de cobro de $ 40 millones

Estrategia de precios competitivos

Métricas de precios de Target:

• Garantía de coincidencia de precios con competidores en línea y locales
• Precio promedio 15% más bajo que los grandes almacenes tradicionales
• 5% de ahorros adicionales para los titulares de la tarjeta roja

Experiencia personalizada del cliente

Estadísticas del programa de fidelización del círculo objetivo:

Métrico	Valor 2023
Totales miembros	95 millones
Ahorros anuales por miembro	$225
Ofertas personalizadas	Más de 3.000 ofertas únicas anualmente

Target Corporation (TGT) - Modelo de negocio: relaciones con los clientes

Programa de lealtad del círculo objetivo

A partir de 2024, el programa de lealtad del círculo objetivo tiene 145 millones de miembros activos. Los miembros reciben:

• 1% de ganancias en cada compra
• Ofertas y ofertas personalizadas
• Recompensas de cumpleaños

Métrico	Valor
Miembros de lealtad total	145 millones
Gasto promedio de miembros	$ 1,200 anualmente

Aplicación móvil para compras personalizadas

Las descargas de aplicaciones móviles de Target alcanzaron los 50 millones a partir del cuarto trimestre de 2023. Las características clave incluyen:

• Integración de billetera digital
• Verificación de inventario en tiempo real
• Recomendaciones personalizadas

Métrica de rendimiento de la aplicación	Valor
Descargas totales de aplicaciones	50 millones
Usuarios activos mensuales	22 millones

Canales de servicio al cliente

Target proporciona atención al cliente multicanal a través de:

• Soporte en la tienda
• Soporte telefónico
• Chat en vivo
• Soporte por correo electrónico
• Asistencia en las redes sociales

Canal de soporte	Tiempo de respuesta promedio
Soporte telefónico	3.5 minutos
Chat en vivo	2.1 minutos

Marketing personalizado

La estrategia de marketing personalizada de Target incluye:

• Anuncios digitales dirigidos
• Campañas de correo electrónico personalizadas
• Seguimiento conductual

Rendimiento de marketing	Valor
Tarifa de apertura de correo electrónico	24.5%
Tasa de conversión	4.2%

Compromiso digital y en la tienda

Target integra experiencias de compra digital y física a través de:

• Compre en línea, recoge en la tienda (Bopis)
• Entrega el mismo día
• Recogida en la acera

Métrico omnicanal	Valor
Transacciones bopis	35% de los pedidos en línea
Cobertura de entrega el mismo día	90% de las tiendas estadounidenses

Target Corporation (TGT) - Modelo de negocio: canales

Tiendas minoristas físicas

A partir de 2023, Target opera 1.948 tiendas minoristas en los Estados Unidos.

Tipo de tienda	Número de ubicaciones
Tiendas de objetivos tradicionales	1,897
Tiendas urbanas de formato pequeño	51

Sitio web de comercio electrónico

Target.com generó $ 24.6 mil millones en ventas digitales en 2022, lo que representa el 18.7% de las ventas minoristas totales.

Métrica de ventas digitales	Valor 2022
Ventas digitales totales	$ 24.6 mil millones
Crecimiento de las ventas digitales	10.2%

Aplicación de compras móviles

La aplicación móvil de Target se ha descargado más de 75 millones de veces a partir de 2023.

• Los usuarios de aplicaciones móviles representan el 35% de las ventas digitales
• Usuarios activos mensuales promedio: 40 millones

Plataformas de redes sociales

Plataforma	Seguidores/suscriptores
Instagram	4.2 millones
Facebook	5.6 millones
Gorjeo	2.1 millones

Mercados de terceros en línea

Se dirige a los socios con múltiples plataformas en línea para expandir el alcance digital.

• Amazonas
• Walmart.com
• Google Shopping

Las ventas del mercado de terceros contribuyeron aproximadamente al 5% a los ingresos digitales totales de Target en 2022.

Target Corporation (TGT) - Modelo de negocio: segmentos de clientes

Consumidores urbanos y suburbanos de clase media

Target atiende a aproximadamente 48 millones de hogares semanalmente a partir de 2023. Ingresos familiares promedio para compradores de objetivos: $ 74,500. Distribución geográfica:

Región	Porcentaje de la base de clientes
Áreas urbanas	42%
Áreas suburbanas	58%

Millennial y Gen Z compradores

Demografía de clientes de Target para consumidores más jóvenes:

• Millennial Shoppers: 31% de la base total de clientes
• Compradores de Gen Z: 22% de la base total de clientes
• Rango de edad promedio: 22-40 años

Familias que buscan productos asequibles y elegantes

Estadísticas de segmento de clientes orientadas a la familia:

Característica familiar	Porcentaje
Hogares con niños	47%
Tamaño promedio del hogar	2.6 personas

Consumidores conscientes del presupuesto

Información del segmento de clientes centrado en el presupuesto:

• Valor de transacción promedio: $ 45.67
• Clientes que usan Target Redcard: 28% del total de compradores
• Ahorros anuales a través de Redcard: $ 320 por hogar

Compradores en línea expertos en tecnología

Detalles del segmento de compras digitales:

Métrica de compras en línea	Valor
Crecimiento de ventas digitales (2022-2023)	12.4%
Porcentaje de ventas de canales digitales	18.7%
Usuarios de aplicaciones móviles	35 millones de usuarios activos

Target Corporation (TGT) - Modelo de negocio: Estructura de costos

Gastos de adquisición de mercancías

El costo total de los bienes de Target vendidos (COGS) para el año fiscal 2023: $ 106.11 mil millones

Categoría de gastos	Costo anual
Adquisición de inventario	$ 93.5 mil millones
Logística de proveedores	$ 8.2 mil millones
Costos de importación/exportación	$ 4.4 mil millones

Almacenar operaciones y mantenimiento

Gastos totales relacionados con la tienda para el año fiscal 2023: $ 22.6 mil millones

• Gastos de alquiler y arrendamiento: $ 4.3 mil millones
• Utilidades: $ 1.8 mil millones
• Mantenimiento y reparaciones de almacenamiento: $ 2.5 mil millones
• Sistemas de seguridad de la tienda: $ 380 millones

Desarrollo y mantenimiento de la plataforma digital

Inversión en infraestructura digital en 2023: $ 1.2 mil millones

Categoría de gastos digitales	Costo anual
Desarrollo de sitios web y aplicaciones	$ 450 millones
Ciberseguridad	$ 280 millones
Infraestructura en la nube	$ 470 millones

Costos de marketing y publicidad

Gastos de marketing total para el año fiscal 2023: $ 2.7 mil millones

• Publicidad digital: $ 980 millones
• Publicidad de medios tradicional: $ 1.2 mil millones
• Campañas promocionales: $ 520 millones

Salario de empleados y capacitación

Compensación total de la fuerza laboral para el año fiscal 2023: $ 15.4 mil millones

Categoría de compensación	Costo anual
Salarios base	$ 11.6 mil millones
Beneficios	$ 2.8 mil millones
Capacitación y desarrollo	$ 1 mil millones

Target Corporation (TGT) - Modelo de negocio: flujos de ingresos

Ventas minoristas en la tienda

Ventas minoristas totales para Target Corporation en el año fiscal 2023: $ 109.1 mil millones

Categoría de ventas	Ingresos ($ B)	Porcentaje
Venta de mercancías	86.7	79.5%
Comida y bebida	14.5	13.3%
Artículos para el hogar	8.9	8.2%

Transacciones de comercio electrónico en línea

Ventas digitales para el año fiscal 2023: $ 23.5 mil millones

• Tasa de crecimiento de las ventas digitales: 12.4%
• Porcentaje de ventas digitales de ingresos totales: 21.5%

Venta de productos de etiqueta privada

Ventas de marca privada total en 2023: $ 30.2 mil millones

Marca privada	Ingresos ($ B)
Arriba & Arriba	5.6
Goodfellow & Co	4.3
Gato & Jacobo	3.9

Comisiones del mercado digital

Ingresos de la Comisión de Mercado de terceros: $ 412 millones en 2023

Programa de tarjeta de crédito/débito de Target RedCard

Transacciones totales de Redcard en 2023: $ 22.8 mil millones

• Tasa de penetración de Redcard: 24.3%
• Valor de transacción Redcard promedio: $ 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