The discount department store giant will offer more brand partnerships to end-customers, for example, with Champion and Disney.
Target Corporation, a discount department store company and the seventh-biggest retailer in the US has outlined how ongoing investments will accelerate its strategy and drive billions of dollars of profitable sales growth across its multi-channel business. Target’s plan is to drive $15 Billion+ in sales growth by 2030.
Targets strategic plans outlined
An on-trend and affordable assortment packed with style, newness and value will be brought to consumers, reinforcing Target as the destination for discovery by blending its physical, digital and social commerce shopping experiences, increasing ease, reliability and speed by investing in supply chain and fulfillment capabilities, and offering Target Circle benefits.
“Shoppers continue to seek different options and distinctive shopping experiences without sacrificing value, and Target has the scale, strategy and capabilities to support all the ways consumers shop and engage with brands,” said Brian Cornell, chair and CEO, Target Corporation.
Gains in consumer traffic, improvements in speed and reliability, and accelerating growth in digital capabilities mean the company is doubling down on initiatives that scale these capabilities and drive meaningful growth. The strategy is to create today’s Target, offering everyday discovery and delight for millions of families, and ensuring it remains a consumer favorite for years to come.
Target said it will offer more newness, quality and relevance. Investments will build momentum in core discretionary categories and accelerate growth in frequency categories. Plans include:
Beginning in 2025, a multi-year initiative will build momentum in product categories with growth potential. For example, a reinvention in gaming, sports and toys will offer new and expanded assortments and an enhanced in-store experience, strengthening Target’s position as a gaming destination with video game releases and expanding its youth sports offerings. Target will offer more beloved brand partnerships, including recently announced collections with Champion and Disney, as well as shop-in-shops with Warby Parker and partnership deals with Reebok (read more in detail below).
New partnerships and more speed
More brand partnerships will be offered, including with Champion and Disney. Target will also work on speed and flexibility in apparel: The time taken to design, source and get product on shelves will be reduced by enhancing apparel management (optimizing raw materials, production capacity and lead times). This will quickly add new styles and silhouettes (e.g. the rapidly growing All in Motion activewear line).
More newness in beauty will come with the introduction of over 45 new beauty brands and 2,000 new items in February (90% under $20). More newness to come.
Designing for discovery, however consumers shop: Target continues to invest in the digital experience to enhance omnichannel shopping by blending social, digital and in-store experiences. Plans for 2025 and beyond include:
Elevating shopping with technology
The retailer will innovate with search, social, and data-driven solutions. This will include enhanced solutions powered by AI, offering more relevant recommendations and search optimization. To grow its digital ecosystem, Target will expand its Target Plus marketplace. It aims to grow third-party digital sales from approximately $1 billion in 2024 to over $5 billion by 2030, adding brands such as Peloton, Daily Harvest and Honest Baby Clothing. It also plans to double the size of its in-house media company, Roundel, by 2030.
To maintain profitable growth, the retailer plans to create personalized connections and grow its vendor base, integrating further into Target Plus and Target Circle. Investing for ease, reliability, and rewards – The retailer will invest in its stores and supply chain to meet consumers, wherever and however they shop. Plans include:
To continue profitable growth, Target plans to:
- Open and remodel new stores
- Improve its supply chain
- Offer new Target Circle benefits
- Enhance same-day delivery, the fastest-growing mode of shopping in 2024, with further improvements in 2025.
Target Corporation has inked a strategic partnership with Authentic Brands Group to bring the Champion brand back to life in Target stores for back-to-school in August.
“The Champion collection for Target will offer a fresh take on Champion’s signature look featuring a unique line of high-quality, trend-forward activewear and sporting goods for adults and kids. The line will be available in Target stores and on Target.com beginning in August,” Target said in a media release.
Target had a very successful relationship with Champion’s former parent company Hanesbrands, Inc. (HBI), marketing an exclusive line called C9 by Champion for 15 years. HBI had partnered with Target to sell the C9 by Champion men’s, women’s and children’s activewear clothing and shoe brand. But HBI didn’t renew its contract for the line with Target when it expired in early 2020. They parties announced they were canceling that partnership in 2018.
C9 was reportedly a big cash driver for HBI, generating in excess of $400 million in sales over the final year of the program. Target was quick to point out at the time that HBI would still be a key vendor for Target, with the retailer making up close to 13 percent of the Hanes brand business.
