Target Corporation (TGT): Modelo de Negócios Canvas [Jan-2025 Atualizado]

A Target Corporation, uma potência de varejo, criou magistralmente um modelo de negócios que combina perfeitamente compras tradicionais físicas com estratégias digitais de ponta. Ao se posicionar estrategicamente como um destino único para mercadorias acessíveis e modernas, a Target capturou o coração de milhões de consumidores nos Estados Unidos. De sua inovadora abordagem omnichannel às suas experiências personalizadas de clientes, a empresa transformou o varejo, entendendo e antecipando as necessidades em evolução dos compradores modernos, principalmente gerações de millennials e tecnologia que buscam conveniência, estilo e valor.

Target Corporation (TGT) - Modelo de Negócios: Principais Parcerias

Parcerias de fornecedores com grandes marcas

A Target mantém parcerias estratégicas com as principais marcas de consumidores:

Categoria de marca	Detalhes da parceria	Valor anual de colaboração
Companhia da Coca-Cola	Acordos exclusivos de fornecimento de bebidas	US $ 275 milhões
Procter & Jogar	Distribuição exclusiva do produto	US $ 412 milhões
Unilever	Cuidados pessoais e produtos domésticos	US $ 189 milhões

Colaborações Estratégicas Internacionais de Manufatura

As parcerias internacionais de fabricação da Target incluem:

• Li & Fung Limited (Hong Kong) - Fornecimento e produção
• Grupo de Tecnologia da Foxconn (Taiwan) - Manufatura eletrônica
• Grupo Internacional Shenzhou (China) - Fabricação de vestuário

Ecossistema de Parceria Tecnológica

Parceiro de tecnologia	Foco em parceria	Investimento anual
Shopify	Integração da plataforma de comércio eletrônico	US $ 87 milhões
Visa	Soluções de pagamento digital	US $ 62 milhões
Apple Pay	Infraestrutura de pagamento móvel	US $ 45 milhões

Parceiros de gerenciamento da cadeia de suprimentos

Parcerias críticas da cadeia de suprimentos da Target:

• UPS - logística e distribuição
• C.H. Robinson - Gerenciamento de transporte
• Geodis - Gerenciamento de armazenamento e inventário

Contratos de serviço de entrega on -line

Parceiro de entrega	Tipo de serviço	Valor anual de colaboração
Shipt	Entrega em casa no mesmo dia	US $ 550 milhões
Doordash	Entrega de mercadorias de varejo	US $ 320 milhões

Target Corporation (TGT) - Modelo de Negócios: Atividades -chave

Compras e gerenciamento de mercadorias de varejo

A Target opera com 1.948 lojas de varejo nos Estados Unidos a partir de 2023. O volume anual de compras de mercadorias atinge aproximadamente US $ 106 bilhões. O sistema de gerenciamento de inventário processa mais de 750.000 SKUs exclusivos de produto.

Categoria de compras	Gastos anuais	Contagem de fornecedores
Vestuário	US $ 22,4 bilhões	1.200 fornecedores
Bens domésticos	US $ 18,6 bilhões	850 fornecedores
Eletrônica	US $ 15,3 bilhões	400 fornecedores

Operações de varejo omnichannel

As vendas digitais representam 18,7% da receita total, com US $ 23,5 bilhões em vendas digitais para o ano fiscal de 2022. Target.com recebe 150 milhões de visitantes mensais do site.

• Serviços de entrega no mesmo dia disponíveis em mais de 2.000 locais
• Encomende serviços de coleta em 1.900 lojas
• Serviços de acionamento em 1.750 locais

Design da loja e otimização da experiência do cliente

Tamanho médio da loja: 130.000 pés quadrados. Após a remodelação do investimento de US $ 1,2 bilhão em 2022.

Marketing digital e engajamento do cliente

O Programa de Fidelidade do Círculo Target inclui 95 milhões de membros. Orçamento de marketing digital estimado em US $ 750 milhões anualmente.

Desenvolvimento de produtos e gerenciamento de marca de marca própria

A Target gerencia 10 marcas proprietárias gerando US $ 30 bilhões em receita anual. As marcas de marca própria representam 32% do total de vendas de mercadorias.

Marca de marca própria	Receita anual	Categorias de produtos
Acima & Acima	US $ 5,2 bilhões	Cuidados pessoais/família
Goodfellow & Co	US $ 4,8 bilhões	Vestuário masculino
Gato & Jack	US $ 3,6 bilhões	Roupas infantis

Target Corporation (TGT) - Modelo de negócios: Recursos -chave

Extensa rede de lojas de varejo

A partir do quarto trimestre 2023, a Target opera 1.948 lojas nos Estados Unidos.

Locais totais de varejo	1,948
Armazenar tamanho médio	130.000 pés quadrados
Estados cobertos	50

Infraestrutura digital e plataforma de comércio eletrônico

As vendas digitais da Target atingiram US $ 24,4 bilhões no ano fiscal de 2022, representando 18,7% do total de vendas no varejo.

• Crescimento de vendas on -line de 2,6% no ano fiscal de 2022
• Plataforma Target.com com recursos de aplicativo móvel
• Serviços de entrega no mesmo dia por meio da Shipt

Cadeia de suprimentos e centros de distribuição

Centros de distribuição total	41
Capacidade total da rede de atendimento	1,8 milhão de pés quadrados
Gastos anuais de logística	US $ 2,1 bilhões

Marcas proprietárias

A Target mantém mais de 20 marcas possuídas em várias categorias.

• As marcas geram aproximadamente US $ 30 bilhões em receita anual
• Marcas exclusivas incluem bom & Reúna, gato & Jack, limiar

Força de trabalho e tecnologia

Total de funcionários	440,000
Investimento anual de treinamento	US $ 120 milhões
TECNOLOGIA P&D Gastos	US $ 1,8 bilhão anualmente

Target Corporation (TGT) - Modelo de Negócios: Proposições de Valor

Mercadorias acessíveis e de alta qualidade em várias categorias

A Target oferece mercadorias em várias categorias com o seguinte posicionamento de preços:

Categoria	Faixa de preço médio	Posicionamento de mercado
Bens domésticos	$10 - $200	Design acessível
Roupas	$5 - $50	Moda amigável ao orçamento
Eletrônica	$20 - $500	Preços competitivos

Experiência de compra conveniente

A estratégia omnichannel da Target inclui:

• 1.931 lojas de varejo nos Estados Unidos
• Plataforma digital com 49,8 milhões de visitantes online mensais
• Entrega no mesmo dia através da Shipt (adquirida em 2017)
• Encomende serviços de coleta e acionamento

Ofertas de produtos na moda e focada em design

Target colabora com os designers para criar coleções exclusivas:

Colaboração de designer	Ano de lançamento	Impacto estimado da receita
Rifle Paper Co.	2021	Receita de cobrança de US $ 15 milhões
Lareira & Mão com magnólia	2017	Receita anual de cobrança de US $ 40 milhões

Estratégia de preços competitivos

Métricas de preços da Target:

• Garantia de correspondência de preços com concorrentes online e locais
• Preço médio 15% menor do que as lojas de departamento tradicionais
• 5% de economia adicional para os detentores de redes vermelhas

Experiência personalizada do cliente

Target Circle Lealty Program Statistics:

Métrica	2023 valor
Total de membros	95 milhões
Economia anual por membro	$225
Ofertas personalizadas	Mais de 3.000 ofertas exclusivas anualmente

Target Corporation (TGT) - Modelo de Negócios: Relacionamentos do Cliente

Programa de fidelidade do círculo de alvo

A partir de 2024, o Programa de Lealdade do Círculo Target possui 145 milhões de membros ativos. Os membros recebem:

• 1% de ganhos em cada compra
• Ofertas e ofertas personalizadas
• Recompensas de aniversário

Métrica	Valor
Membros totais de lealdade	145 milhões
Gasto médio de membros	US $ 1.200 anualmente

Aplicativo móvel para compras personalizadas

Os downloads de aplicativos móveis da Target atingiram 50 milhões a partir do quarto trimestre 2023. Os principais recursos incluem:

• Integração da carteira digital
• Verificação de inventário em tempo real
• Recomendações personalizadas

Métrica de desempenho do aplicativo	Valor
Downloads de aplicativos totais	50 milhões
Usuários ativos mensais	22 milhões

Canais de atendimento ao cliente

A Target fornece suporte ao cliente multicanal por meio de:

• Suporte na loja
• Suporte telefônico
• Bate -papo ao vivo
• Suporte por e -mail
• Assistência à mídia social

Canal de suporte	Tempo médio de resposta
Suporte telefônico	3,5 minutos
Bate -papo ao vivo	2,1 minutos

Marketing personalizado

A estratégia de marketing personalizada da Target inclui:

• Anúncios digitais direcionados
• Campanhas de email personalizadas
• Rastreamento comportamental

Desempenho de marketing	Valor
Taxa de abertura por e -mail	24.5%
Taxa de conversão	4.2%

Engajamento digital e na loja

A Target integra experiências de compras digitais e físicas por meio de:

• Compre online, pegue na loja (Bopis)
• Entrega no mesmo dia
• Coleta na calçada

Omnichannel métrica	Valor
Transações de Bopis	35% dos pedidos online
Cobertura de entrega no mesmo dia	90% das lojas dos EUA

Target Corporation (TGT) - Modelo de Negócios: Canais

Lojas de varejo físico

A partir de 2023, a Target opera 1.948 lojas de varejo nos Estados Unidos.

Tipo de loja	Número de locais
Lojas -alvo tradicionais	1,897
Lojas urbanas de pequeno formato	51

Site de comércio eletrônico

Target.com gerou US $ 24,6 bilhões em vendas digitais em 2022, representando 18,7% do total de vendas no varejo.

Métrica de vendas digitais	2022 Valor
Vendas digitais totais	US $ 24,6 bilhões
Crescimento de vendas digitais	10.2%

Aplicativo de compra móvel

O aplicativo móvel da Target foi baixado mais de 75 milhões de vezes a partir de 2023.

• Usuários de aplicativos móveis representam 35% das vendas digitais
• Usuários ativos mensais médios: 40 milhões

Plataformas de mídia social

Plataforma	Seguidores/assinantes
Instagram	4,2 milhões
Facebook	5,6 milhões
Twitter	2,1 milhões

Mercados on-line de terceiros

A Target Partines com várias plataformas on -line para expandir o alcance digital.

• Amazon
• Walmart.com
• Google Shopping

As vendas do mercado de terceiros contribuíram com aproximadamente 5% para a receita digital total da Target em 2022.

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

Consumidores urbanos e suburbanos de classe média

A Target atende a aproximadamente 48 milhões de famílias semanalmente a partir de 2023. Renda familiar média para compradores -alvo: US $ 74.500. Distribuição geográfica:

Região	Porcentagem de base de clientes
Áreas urbanas	42%
Áreas suburbanas	58%

Millennial e Gen Z Shoppers

Demografia de clientes da Target para consumidores mais jovens:

• Millennial Shoppers: 31% da base total de clientes
• Compradores da geração Z: 22% da base total de clientes
• Faixa etária média: 22-40 anos

Famílias que buscam produtos acessíveis e elegantes

Estatísticas do segmento de clientes orientadas para a família:

Característica familiar	Percentagem
Famílias com filhos	47%
Tamanho médio da família	2.6 pessoas

Consumidores conscientes do orçamento

Insights de segmento de clientes focados no orçamento:

• Valor médio da transação: $ 45,67
• Clientes usando o Target Redcard: 28% do total de compradores
• Economia anual através do Redcard: US $ 320 por família

Compradores on-line com conhecimento de tecnologia

Detalhes do segmento de compras digitais:

Métrica de compras on -line	Valor
Crescimento de vendas digitais (2022-2023)	12.4%
Porcentagem de vendas de canais digitais	18.7%
Usuários de aplicativos móveis	35 milhões de usuários ativos

Target Corporation (TGT) - Modelo de Negócios: Estrutura de Custo

Despesas de compras de mercadorias

O custo total dos bens da Target vendidos (COGS) para o ano fiscal de 2023: US $ 106,11 bilhões

Categoria de despesa	Custo anual
Compras de inventário	US $ 93,5 bilhões
Logística do fornecedor	US $ 8,2 bilhões
Custos de importação/exportação	US $ 4,4 bilhões

Operações e manutenção da loja

Despesas totais relacionadas à loja para o ano fiscal de 2023: US $ 22,6 bilhões

• Despesas de aluguel e arrendamento: US $ 4,3 bilhões
• Utilitários: US $ 1,8 bilhão
• Manutenção e reparos da loja: US $ 2,5 bilhões
• Sistemas de segurança da loja: US $ 380 milhões

Desenvolvimento e manutenção da plataforma digital

Investimento de infraestrutura digital em 2023: US $ 1,2 bilhão

Categoria de despesa digital	Custo anual
Site e desenvolvimento de aplicativos	US $ 450 milhões
Segurança cibernética	US $ 280 milhões
Infraestrutura em nuvem	US $ 470 milhões

Custos de marketing e publicidade

Despesas totais de marketing para o ano fiscal de 2023: US $ 2,7 bilhões

• Publicidade digital: US $ 980 milhões
• Publicidade da mídia tradicional: US $ 1,2 bilhão
• Campanhas promocionais: US $ 520 milhões

Salários e treinamento de funcionários

Compensação total da força de trabalho para o ano fiscal de 2023: US $ 15,4 bilhões

Categoria de compensação	Custo anual
Salários da base	US $ 11,6 bilhões
Benefícios	US $ 2,8 bilhões
Treinamento e desenvolvimento	US $ 1 bilhão

Target Corporation (TGT) - Modelo de negócios: fluxos de receita

Vendas no varejo na loja

Vendas totais de varejo para a Target Corporation no ano fiscal de 2023: US $ 109,1 bilhões

Categoria de vendas	Receita ($ B)	Percentagem
Vendas de mercadorias	86.7	79.5%
Comida e bebida	14.5	13.3%
Bens domésticos	8.9	8.2%

Transações de comércio eletrônico online

Vendas digitais para o ano fiscal de 2023: US $ 23,5 bilhões

• Taxa de crescimento de vendas digitais: 12,4%
• Porcentagem de vendas digitais da receita total: 21,5%

Vendas de produtos de marca própria

Vendas totais de marca privada em 2023: US $ 30,2 bilhões

Marca privada	Receita ($ B)
Acima & Acima	5.6
Goodfellow & Co	4.3
Gato & Jack	3.9

Comissões de mercado digital

Receita da Comissão de Marketplace de terceiros: US $ 412 milhões em 2023

Programa de cartão de crédito/débito Redcard Target

Total de transações Redcard em 2023: US $ 22,8 bilhões

• Taxa de penetração do Redcard: 24,3%
• Valor médio da transação 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