Our durable business model is designed to stand the test of time and differentiate us in the marketplace. Over the years, we’ve built a foundation that serves our guests, team members, vendors, communities and shareholders well —anddelivers strong results — no matter how the environment around us evolves. It’s the framework that guides us as we live out Target’spurpose— to help all families discover the joy of everyday life. And at the heart of it all? Our team’scultureof caring, growing and winning together.
Our roadmap in action
Our growth-focused enterprise strategy helps us serve our guests, fulfill our purpose and drive business results. And it’s through our team, technology and operations that we bring all that joy to life. The six pillars of our strategy are:
- Differentiating from our competition with our assortment of uniqueowned brands and curated leadingnational brands.
- Investing to create an engaging, convenient, safe, and differentiatedshopping experience for our guests.
- Leveraging ourstores as fulfillment hubs to efficiently meet our guests' needs, whether they purchase online or in-store.
- Engaging with our guests through programs like Target Circle and RedCard to maintain and enhance ourrelevancy.
- Deliveringaffordabilityto our guests.
- Leveraging our size and scale to benefitpeople, the planet, and our business, primarily through Target Forward, our enterprise sustainability strategy.
We’ll continue to support our team and lean into our culture, knowing they’re at the heart of our overall success.
Brian CornellChair and Chief Executive Officer
In 2023, we'll bring guestsour very best
To do it, we’ll keep investing in priority areas that build our capabilities, enhance our shopping experiences and make Target more relevant than ever. In fact, we plan to invest $4 billion to $5 billion this year to deliver even more of what our guests love most. That includes …
~20 new stores coming to more neighborhoods in 2023.
~175 stores updated by year’s end, ranging from full remodels to the addition of enhancements such as Ulta Beauty at Target or Apple at Target shop-in-shops and expanded capacity for same-day fulfillment services.
Expanding with 6 or more sortation centers opening by the end of 2026 to increase our shipping speed, efficiency and capacity.
Delivering affordable joy by launching or expanding more than 10 owned brands and thousands of products across our multi-category portfolio.
New enhancements such as Drive Up with Starbucks and Returns with Drive Up to make our same-day services more convenient than ever.
Improving our Target Circle loyalty program with enhancements to make it even more rewarding.
Driving efficiencies to fuel growth
As we enhance our shopping experience, we've doubled down with our enterprise efficiency efforts, which aim to simplify our operations and enhance our team and guest experience while fueling near- and long-term growth. Our goal is to achieve $2 billion to $3 billion in cost savings over the next few years.
Shopping powered by stores
No matter how guests choose to shop, our stores answer the call — acting as hubs for in-store shopping, our popular same-day fulfillment services, and shipping orders directly to guests. We'll continue investing to scale our stores-as-hubs strategy, building even better experiences and creating room for future growth.
>10%
same-day services' share of our overall sales.
We are rolling out Returns with Drive Up to all stores by summer's end.
Our owned brands difference
Our guests are loyal fans of the more than 45 owned brands across our assortment. From longtime favorites like Good & Gather food items (now including Baby and Toddler) and Cat & Jack kids' apparel and accessories, to our newest additions like Brightroom storage and home organization, Kindfull pet food, and Figmint modern kitchenware, our brands help us offer guests the newness, differentiation and value they love.
>$30B
sales of our owned brands in 2022.
Sales across our owned brand portfolio grew faster than overall sales in 2022.
Building the supply chain of the future
We continue to invest in world-class operations, from our store hubs and distribution facilities to our industry-leadingfulfillment services and theglobal team that brings it all to life. Plus, we'reramping up innovations to support our long-term growth, like oursortation centers that accelerate our last-mile capabilities. These resources allow us to grow our business and meet our guests’ needs, even in challenging environments.
26M
packages delivered
26 million packages were delivered through sortation centers in 2022.
Our sustainability strategy
Our vision is to co-create an equitable and regenerative future together with our guests, partners and communities. We call our sustainability strategy Target Forward — and it’s centered on leveraging our size and scale to benefit people, the planet and our business.
By 2030, Target aims to be the market leader for creating and curating inclusive, sustainable brands and experiences.
In 2022, we opened Target’s first net zero energy store. On its own, the store will generate more renewable energy than it needs each year to operate. It’s a powerful example of our Target Forward strategy in action as we work toward our commitment to achieve net zero greenhouse gas emissions by 2040. It also serves as a testing site for sustainability-focused innovations, which will help inform future store designs.
Designing for all
A key ambition of Target Forward is to design and elevate sustainable and inclusive brands — and as part of that, we are intentionally creating products and experiences that serve our guests, team members and communities.
Meet our strategic partners
Weteamup with our guests’ favorite leading national brands to create innovative new in-store and digital shopping experiences they won’t findanywhere else. Check out what we've created together.
>170
million beverages
Starbucks beverages served in 2022 alone.
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Q4 + Full Year 2022
Q3 2022
Q2 2022
Q1 2022
Forward-Looking Statements: Statements on this page regarding Target’s future financial performance, planned investments in its business, enhancement of fulfillment and other operational capabilities, new store openings and remodels, potential benefits from Target's enterprise efficiency efforts, growth of strategic brand partnerships, expansion of our owned brands, sustainability goals and commitments, and enhancements to and results of digital experiences, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause Target’s actual results to differ materially. The most important risks and uncertainties are described in Item 1A of Target’s most recent Form 10-K and, if applicable, any subsequent filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, which, unless otherwise stated, was March 8, 2023, and Target does not undertake any obligation to update any forward-looking statement.
