Key Partners
- National-brand vendors pay rebates and allowances (FACT).
- Overseas factories; ~half of goods imported (FACT).
- TD Bank funds and owns Target Circle Card loans (FACT).
- CVS pharmacies under a perpetual agreement (FACT).
- Starbucks, Target Optical, Apple, Levi's in-store (FACT).
- Ulta Beauty shop-in-shops end Aug 2026 (FACT).
Key Activities
- Merchandising and owned-brand design (FACT).
- Global sourcing from 13 countries (FACT).
- Distribution through 70 supply chain facilities (FACT).
- Store-based fulfillment of digital orders (FACT).
- Running Roundel ads and Target Plus (FACT).
- 2025 business transformation, $250M costs (FACT).
Key Resources
- 1,995 stores; 1,546 owned buildings (FACT).
- Property & equipment $33.7B, Jan 2026 (FACT).
- 40+ owned brands, ~30% of merchandise sales (FACT).
- ~415,000 team members (FACT).
- Target Circle loyalty data (FACT).
- Inventory $12.3B; cash $5.5B (FACT).
Value Propositions
- Owned brands only at Target (FACT).
- Groceries + essentials + style in one trip (FACT).
- Drive Up, Order Pickup, same-day delivery (FACT).
- Target Circle Card — 5% off nearly all purchases (FACT).
- Price cuts on 10,000+ items, 2025–26 (FACT).
- Shop-in-shops — Apple, Levi's, Starbucks (FACT).
Customer Relationships
- Free Target Circle — deals and rewards (FACT).
- Target Circle Card — 5% off, free shipping (FACT).
- Paid Target Circle 360 — unlimited same-day delivery (FACT).
- Q4 membership revenue more than doubled (FACT).
- Self-service stores with team-member help (INFERENCE).
- 5% of profit given to communities since 1946 (FACT).
Channels
- 1,995 stores in all 50 states + DC (FACT).
- Stores-originated 79.4% of FY25 sales (FACT).
- Digitally originated 20.6% (FACT).
- Order Pickup, Drive Up, same-day delivery (FACT).
- Target Plus third-party marketplace (FACT).
- Ad spend $1.5B in FY2025 (FACT).
Customer Segments
- U.S. households; nearly all sales in the U.S. (FACT).
- Families are the stated focus (FACT).
- Food & beverage $24.1B, largest category (FACT).
- Discretionary — apparel, home, hardlines, beauty (FACT).
- Vendors and sellers buy Roundel ads (FACT).
- Third-party sellers on Target Plus (FACT).
Cost Structure
- Cost of sales $75.5B, 72.1% of sales (FACT).
- SG&A $21.5B, 20.6% of sales (FACT).
- Workforce is largest operating expense (FACT).
- Advertising costs $1.5B (FACT).
- D&A (outside COGS) $2.6B; capex $3.7B (FACT).
- Net interest expense $445M (FACT).
Revenue Streams
- FY2025 net sales $104.8B, −1.7% (FACT).
- Merchandise sales $102.7B (FACT).
- Advertising $915M, up from $649M (FACT).
- Credit card profit sharing $522M (FACT).
- Other incl. memberships $626M (FACT).
- FY2025 net earnings $3.71B, −9.4% (FACT).