Target Shares Secrets to Future Success

Target is launching Good & Gather Collabs, including chef-driven products, as part of its effort to deliver on delight and value.

Target is keenly aware of market headwinds in the short-term future, as CFO Jim Lee reported this week that the company will remain “appropriately cautious” with its expectations for 2025. That said, Target’s leadership and teams are hard at work on strategies and tactics to steer the best performance possible.

Reflecting a balance of caution and forward-looking enthusiasm, Target shared growth plans timed with its financial community meeting in Minneapolis. Among other business aspects, the retailer is focusing on on-trend affordable assortments, omnichannel discovery, enhanced supply chain and fulfillment capabilities, expanded Target Circle membership and strategic partnerships.

Investments in these areas aim to accelerate Target's strategy and drive more than $15 billion in sales growth by 2030.

"Shoppers continue to seek differentiated 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," explained Brian Cornell, chair and CEO. "With gains in consumer traffic, continuing improvements in speed and reliability, and accelerating growth across digital capabilities, we are doubling down on initiatives that scale these capabilities and drive meaningful top-line and bottom-line growth. Our strategy is all about creating today's Tarzhay, offering everyday discovery and delight for millions of families and ensuring Target is a consumer favorite for years to come."

In the assortment and discovery arenas, Target announced that it is launching a multi-year initiative to build momentum in categories with growth potential, including groceries. As part of that effort, the retailer is introducing a series of Good & Gather Collabs with chefs as a way to spotlight private label offerings.

First up is a partnership with Chef Ann Kim, a James Beard-Award winning culinary professional from Target’s hometown of Minneapolis. Through this collab, Good & Gather will offer seven Korean-inspired frozen pizzas and appetizers with price points ranging from $6.49 to $7.49.

Meanwhile, shoppers can expect to find a plethora of new offerings at Target this year, including 600 additional food and beverage products under the Good & Gather and Favorite Day store brands. Already, Target has touted the planned launch of 2,000 new items in the beauty category, with 90% of those products priced under $20.

In addition to assortment innovations, Target aims to navigate market challenges through ongoing investments in omnichannel shopping experiences. Among other improvements, the retailer intends to innovate with search, social and data-driven personalization, powered in part by artificial intelligence.

On the brick-and-mortar side, the company expects to add more than 300 stores over the next decade, with 20 openings slated for 2025. Target is also remodeling several stores around the country within the next year to bolster in the in-store shopping experience.

Internal infrastructure changes are in the works, too. Target reports that it is modernizing its core inventory management system with AI-powered technology solutions and implementing new package delivery solutions by leveraging existing stores and supply chain assets and its Shipt capability.

Minneapolis-based Target Corp. is No. 7 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America, with nearly 2,000 locations. PG also included the company on its Retailers of the Century list.