Target Unveils Bold Expansion Plans to Drive $15 Billion Revenue Growth by 2030

Retail giant Target is doubling down on its digital marketplace, media network, and same-day delivery services as part of an ambitious strategy to generate over $15 billion in revenue growth by 2030. The company unveiled its plans at an investor meeting in New York City on Tuesday, outlining steps to bolster its competitive edge against rivals like Walmart and Amazon.

Navigating Market Challenges

Target’s strategic push comes as the retailer grapples with sluggish sales of high-margin discretionary products. The company is aiming to reclaim its market dominance by enhancing its product assortment and improving its supply chain. However, its challenges were underscored by a stock price drop of more than 5% in early trading on Tuesday, following a fiscal 2024 fourth-quarter earnings report that projected a “meaningful” decline in profits for the current quarter due to weaker February sales. As of Monday’s close, Target’s shares had fallen nearly 11% in 2024.

Marketplace and Media Expansion

In a presentation to investors, CEO Brian Cornell highlighted the company’s intent to expand its third-party marketplace, following a strategy similar to Walmart’s and Amazon’s. Target aims to significantly increase its digital marketplace sales from $1 billion in 2024 to more than $5 billion by 2030. Unlike other retailers that embrace a broad range of third-party sellers, Target is curating its marketplace with well-known brands such as Peloton, Daily Harvest, and Honest Baby Clothing.

Additionally, Target is set to double the size of its in-house media company, Roundel, by 2030. Roundel generated over $2 billion in value last year, underscoring the growing importance of digital advertising in retail. This move mirrors Walmart’s success with its advertising platform, Walmart Connect, which has become a lucrative revenue stream.

Enhancing Core Retail Strengths

Beyond its marketplace and media ventures, Target is reinforcing key retail fundamentals, addressing concerns about outdated store layouts and inconsistent product availability. Chief Operating Officer Michael Fiddelke emphasized the importance of maintaining a fresh and dynamic product lineup, stating, “Retail is about product, and the best product at the best value wins.”

Recognizing the need for a stronger product mix, Target is expanding its gaming, sports, and toy categories while enhancing its home goods selection—a historically high-margin segment. The retailer is also introducing a new wave of Good & Gather Collabs, featuring celebrity chefs like Ann Kim, and launching 600 new food and beverage products across its private label brands, Good & Gather and Favorite Day. Furthermore, Target will revamp its pet supplies brand, Boots & Barkley, to capture a larger share of the growing pet care market.

Supply Chain Innovations and AI Investments

A key component of Target’s growth strategy involves overhauling its supply chain. The company is streamlining its apparel production to reduce lead times and compete more effectively with fast-fashion giants like Shein and Temu. Target also plans to invest $4 billion to $5 billion annually in store improvements, supply chain advancements, and technology enhancements. These investments will include AI-powered inventory management systems aimed at reducing stock shortages and optimizing delivery operations.

“We know there’s no ‘Tarzhay’ magic if you can’t find the item you were looking for because we were out of stock or didn’t delight you in-store,” Fiddelke noted.

Expanding Physical Footprint

In addition to digital enhancements, Target is committing to brick-and-mortar growth. The retailer will open 20 new large-format stores and remodel existing locations to enhance the shopping experience.

As Target navigates economic headwinds, its comprehensive strategy—blending digital expansion, product diversification, supply chain improvements, and AI-driven innovation—demonstrates a forward-thinking approach to sustained growth. Whether these initiatives will be enough to regain momentum remains to be seen, but the company is positioning itself for a more competitive and dynamic retail landscape in the years ahead.