Target Corporation (TGT): Business Model Canvas [Jan-2025 Mise à jour]

Target Corporation, une puissance de vente au détail, a magistralement conçu un modèle commercial qui mélange de manière transparente les achats traditionnels de brique et de mortier avec des stratégies numériques de pointe. En se positionnant stratégiquement comme une destination à guichet unique pour les marchandises à la mode abordables, Target a capturé le cœur de des millions des consommateurs aux États-Unis. À partir de son approche omnicanal innovante de ses expériences client personnalisées, la société a transformé le commerce de détail en comprenant et en anticipant les besoins en évolution des acheteurs modernes, en particulier des milléniaux et des générations averties en technologie à la recherche de commodité, de style et de valeur.

Target Corporation (TGT) - Modèle d'entreprise: partenariats clés

Partenariats des fournisseurs avec les grandes marques

Target maintient des partenariats stratégiques avec les marques de consommation clés:

Catégorie de marque	Détails du partenariat	Valeur de collaboration annuelle
Coca-Cola Company	Accords de fournitures de boissons exclusives	275 millions de dollars
Procter & Pari	Distribution exclusive des produits	412 millions de dollars
Unlever	Soins personnels et produits ménagers	189 millions de dollars

Collaborations de fabrication internationale stratégique

Les partenariats internationaux de fabrication de Target comprennent:

• Li & Fung Limited (Hong Kong) - Sourcing et production
• Foxconn Technology Group (Taiwan) - Manufacturation électronique
• Shenzhou International Group (Chine) - Fabrication de vêtements

Écosystème de partenariat technologique

Partenaire technologique	Focus de partenariat	Investissement annuel
Faire du shoprif	Intégration de la plate-forme de commerce électronique	87 millions de dollars
Visa	Solutions de paiement numérique	62 millions de dollars
Pomme	Infrastructure de paiement mobile	45 millions de dollars

Partenaires de gestion de la chaîne d'approvisionnement

Les partenariats critiques de la chaîne d'approvisionnement de Target:

• UPS - Logistique et distribution
• C.H. Robinson - Gestion des transports
• Geodis - Gestion de l'entreposage et des stocks

Accords de service de livraison en ligne

Partenaire de livraison	Type de service	Valeur de collaboration annuelle
Navire	Livraison à domicile le jour	550 millions de dollars
Doordash	Livraison de marchandises au détail	320 millions de dollars

Target Corporation (TGT) - Modèle d'entreprise: activités clés

Procurement et gestion des marchandises au détail

Target fonctionne avec 1 948 magasins de détail aux États-Unis à partir de 2023. Le volume annuel des marchandises d'approvisionnement atteint environ 106 milliards de dollars. Le système de gestion des stocks traite plus de 750 000 SKU de produits uniques.

Catégorie d'approvisionnement	Dépenses annuelles	Décompte des vendeurs
Vêtements	22,4 milliards de dollars	1 200 vendeurs
Marchandises à domicile	18,6 milliards de dollars	850 vendeurs
Électronique	15,3 milliards de dollars	400 vendeurs

Opérations de vente au détail omnicanal

Les ventes numériques représentent 18,7% des revenus totaux, avec 23,5 milliards de dollars de ventes numériques pour l'exercice 2022. Target.com reçoit 150 millions de visiteurs mensuels du site Web.

• Services de livraison le jour même disponibles dans plus de 2 000 emplacements
• Commandez des services de ramassage dans 1 900 magasins
• Services de conduite dans 1 750 emplacements

Conception des magasins et optimisation de l'expérience client

Taille moyenne du magasin: 130 000 pieds carrés. Investissement de rénovation de magasin de 1,2 milliard de dollars en 2022.

Marketing numérique et engagement client

Le programme de fidélité Target Circle comprend 95 millions de membres. Budget de marketing numérique estimé à 750 millions de dollars par an.

Développement de produits et gestion de marque de marque privée

Target gère 10 marques propriétaires générant 30 milliards de dollars de revenus annuels. Les marques de marque privée représentent 32% des ventes totales de marchandises.

Marque de marque privée	Revenus annuels	Catégories de produits
En haut & En haut	5,2 milliards de dollars	Soins personnels / ménage
Goodfellow & Co	4,8 milliards de dollars	Vêtements pour hommes
Chat & Jack	3,6 milliards de dollars	Vêtements pour enfants

Target Corporation (TGT) - Modèle d'entreprise: Ressources clés

Réseau de magasins de détail étendus

Au quatrième trimestre 2023, Target exploite 1 948 magasins à travers les États-Unis.

Total des lieux de vente au détail	1,948
Stocker la taille moyenne	130 000 pieds carrés
États couverts	50

Infrastructure numérique et plateforme de commerce électronique

Les ventes numériques de Target ont atteint 24,4 milliards de dollars au cours de l'exercice 2022, ce qui représente 18,7% du total des ventes au détail.

• Croissance des ventes en ligne de 2,6% au cours de l'exercice 2022
• Plateforme Target.com avec capacités d'applications mobiles
• Services de livraison le jour même via Shipt

Centres de chaîne d'approvisionnement et de distribution

Centres de distribution totaux	41
Capacité totale du réseau de réalisation	1,8 million de pieds carrés
Dépenses logistiques annuelles	2,1 milliards de dollars

Marques propriétaires

Target maintient plus de 20 marques possédées dans plusieurs catégories.

• Les marques génèrent environ 30 milliards de dollars de revenus annuels
• Les marques exclusives incluent le bien & Se rassembler, chat & Jack, seuil

Main-d'œuvre et technologie

Total des employés	440,000
Investissement de formation annuelle	120 millions de dollars
Dépenses de R&D technologiques	1,8 milliard de dollars par an

Target Corporation (TGT) - Modèle d'entreprise: propositions de valeur

Marchandises abordables et de haute qualité dans plusieurs catégories

Target offre des marchandises dans plusieurs catégories avec le positionnement des prix suivant:

Catégorie	Fourchette de prix moyenne	Positionnement du marché
Marchandises à domicile	$10 - $200	Conception abordable
Vêtements	$5 - $50	Mode à petit budget
Électronique	$20 - $500	Prix ​​compétitifs

Expérience de magasinage pratique

La stratégie omnicanal de Target comprend:

• 1 931 magasins de détail aux États-Unis
• Plateforme numérique avec 49,8 millions de visiteurs en ligne mensuels
• Livraison le jour même via Shipt (acquis en 2017)
• Commandez des services de ramassage et de conduite

Offres de produits à la mode et axée sur le design

Target collabore avec les concepteurs pour créer des collections exclusives:

Collaboration des concepteurs	Année de lancement	Impact estimé des revenus
Rifle Paper Co.	2021	Revenus de collecte de 15 millions de dollars
Foyer & Main avec magnolia	2017	Revenus de collecte annuelle de 40 millions de dollars

Stratégie de tarification compétitive

Métriques de tarification de Target:

• Garantie de correspondance des prix avec les concurrents en ligne et locaux
• Prix ​​moyen 15% inférieur à celui des grands magasins traditionnels
• 5% d'économies supplémentaires pour les détenteurs de cartes rouges

Expérience client personnalisée

Statistiques du programme de fidélité Target Circle:

Métrique	Valeur 2023
Total des membres	95 millions
Économies annuelles par membre	$225
Offres personnalisées	Plus de 3 000 offres uniques chaque année

Target Corporation (TGT) - Modèle d'entreprise: relations clients

Programme de fidélité Target Circle

En 2024, Target Circle Loyalty Program compte 145 millions de membres actifs. Les membres reçoivent:

• 1% de bénéfices à chaque achat
• Offres et offres personnalisées
• Récompenses d'anniversaire

Métrique	Valeur
Membres de la fidélité totale	145 millions
Dépenses moyennes des membres	1 200 $ par an

Application mobile pour les achats personnalisés

Les téléchargements d'applications mobiles de Target ont atteint 50 millions au 423. Les fonctionnalités clés incluent:

• Intégration du portefeuille numérique
• Vérification des stocks en temps réel
• Recommandations personnalisées

Métrique de performance de l'application	Valeur
Total des téléchargements d'applications	50 millions
Utilisateurs actifs mensuels	22 millions

Canaux de service à la clientèle

Target fournit un support client multicanal via:

• Support en magasin
• Support téléphonique
• Chat en direct
• Assistance par e-mail
• Assistance aux médias sociaux

Canal de support	Temps de réponse moyen
Support téléphonique	3,5 minutes
Chat en direct	2,1 minutes

Marketing personnalisé

La stratégie marketing personnalisée de Target comprend:

• Publicités numériques ciblées
• Campagnes par e-mail personnalisées
• Suivi comportemental

Performance marketing	Valeur
Taux d'ouverture par e-mail	24.5%
Taux de conversion	4.2%

Engagement numérique et en magasin

Target intègre des expériences d'achat numériques et physiques:

• Achetez en ligne, ramassez en magasin (BOPIS)
• Livraison le jour
• Ramassage en bordure de rue

Métrique omnicanal	Valeur
Bopis Transactions	35% des commandes en ligne
Couverture de livraison le jour	90% des magasins américains

Target Corporation (TGT) - Modèle d'entreprise: canaux

Magasins de vente au détail physique

Depuis 2023, Target exploite 1 948 magasins de détail aux États-Unis.

Type de magasin	Nombre d'emplacements
Magasins cibles traditionnels	1,897
Magasins urbains à petit format	51

Site Web de commerce électronique

Target.com a généré 24,6 milliards de dollars de ventes numériques en 2022, ce qui représente 18,7% du total des ventes au détail.

Métrique de vente numérique	Valeur 2022
Ventes numériques totales	24,6 milliards de dollars
Croissance des ventes numériques	10.2%

Application de magasinage mobile

L'application mobile de Target a été téléchargée plus de 75 millions de fois en 2023.

• Les utilisateurs d'applications mobiles représentent 35% des ventes numériques
• Utilisateurs actifs mensuels moyens: 40 millions

Plateformes de médias sociaux

Plate-forme	Adeptes / abonnés
Instagram	4,2 millions
Facebook	5,6 millions
Gazouillement	2,1 millions

Places de marché en ligne tierces

Target s'associe à plusieurs plateformes en ligne pour étendre la portée numérique.

• Amazone
• Walmart.com
• Shopping google

Les ventes de tiers sur le marché ont contribué environ 5% aux revenus numériques totaux de Target en 2022.

Target Corporation (TGT) - Modèle d'entreprise: segments de clientèle

Consommateurs urbains et suburbains de classe moyenne

Target dessert environ 48 millions de ménages chaque semaine en 2023. Revenu médian des ménages pour les acheteurs cibles: 74 500 $. Distribution géographique:

Région	Pourcentage de clientèle
Zones urbaines	42%
Zones de banlieue	58%

Millennial et Gen Z Shoppers

Les données démographiques du client de Target pour les jeunes consommateurs:

• Acheteurs du millénaire: 31% de la clientèle totale
• Gen Z Shoppers: 22% de la clientèle totale
• Tranche d'âge moyenne: 22 à 40 ans

Les familles à la recherche de produits abordables et élégants

Statistiques du segment de la clientèle axée sur la famille:

Caractéristique familiale	Pourcentage
Ménages avec enfants	47%
Taille moyenne du ménage	2,6 personnes

Consommateurs soucieux du budget

Informations sur le segment de la clientèle axé sur le budget:

• Valeur de transaction moyenne: 45,67 $
• Clients utilisant Target Redcard: 28% du total des acheteurs
• Économies annuelles par le biais de Redcard: 320 $ par ménage

Acheteurs en ligne avertis en technologie

Détails du segment de magasinage numérique:

Métrique d'achat en ligne	Valeur
Croissance des ventes numériques (2022-2023)	12.4%
Pourcentage de ventes des canaux numériques	18.7%
Utilisateurs d'applications mobiles	35 millions d'utilisateurs actifs

Target Corporation (TGT) - Modèle d'entreprise: Structure des coûts

Frais d'approvisionnement des marchandises

Le coût total des marchandises de la cible vendue (COGS) pour l'exercice 2023: 106,11 milliards de dollars

Catégorie de dépenses	Coût annuel
Marchandage des stocks	93,5 milliards de dollars
Logistique des fournisseurs	8,2 milliards de dollars
Coûts d'importation / d'exportation	4,4 milliards de dollars

Opérations et entretien des magasins

Total des dépenses liées au magasin pour l'exercice 2023: 22,6 milliards de dollars

• Frais de location et de location: 4,3 milliards de dollars
• Services publics: 1,8 milliard de dollars
• Entretien et réparations des magasins: 2,5 milliards de dollars
• Stocker des systèmes de sécurité: 380 millions de dollars

Développement et maintenance de plate-forme numérique

Investissement d'infrastructure numérique en 2023: 1,2 milliard de dollars

Catégorie de dépenses numériques	Coût annuel
Développement du site Web et des applications	450 millions de dollars
Cybersécurité	280 millions de dollars
Infrastructure cloud	470 millions de dollars

Coûts de marketing et de publicité

Total des dépenses de marketing pour l'exercice 2023: 2,7 milliards de dollars

• Publicité numérique: 980 millions de dollars
• Publicité médiatique traditionnelle: 1,2 milliard de dollars
• Campagnes promotionnelles: 520 millions de dollars

Salaire et formation des employés

Compensation totale de la main-d'œuvre pour l'exercice 2023: 15,4 milliards de dollars

Catégorie de compensation	Coût annuel
Salaires de base	11,6 milliards de dollars
Avantages	2,8 milliards de dollars
Formation et développement	1 milliard de dollars

Target Corporation (TGT) - Modèle d'entreprise: Strots de revenus

Ventes de vente au détail en magasin

Ventes totales de détail pour Target Corporation au cours de l'exercice 2023: 109,1 milliards de dollars

Catégorie de vente	Revenus ($ b)	Pourcentage
Ventes de marchandises	86.7	79.5%
Nourriture et boisson	14.5	13.3%
Marchandises à domicile	8.9	8.2%

Transactions de commerce électronique en ligne

Ventes numériques pour l'exercice 2023: 23,5 milliards de dollars

• Taux de croissance des ventes numériques: 12,4%
• Pourcentage de ventes numériques du chiffre d'affaires total: 21,5%

Ventes de produits de marque privée

Ventes totales de marques privées en 2023: 30,2 milliards de dollars

Marque privée	Revenus ($ b)
En haut & En haut	5.6
Goodfellow & Co	4.3
Chat & Jack	3.9

Commissions du marché numérique

Revenus de la Commission du marché tiers: 412 millions de dollars en 2023

Target Redcard Credit / Debit Card Program

Total des transactions Redcard en 2023: 22,8 milliards de dollars

• Taux de pénétration des cartes rouges: 24,3%
• Valeur de transaction moyenne de Redcard: 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