Target CEO said its digital strategy and technology focus in 2024 are centered on enhancing both guest and team member experiences through innovation, seamless integration of digital and physical shopping, and leveraging emerging technologies like GenAI and social media-driven insights.
With a planned investment of $4 billion to $5 billion in stores, supply chain, and technology, Target continues to evolve its omnichannel capabilities while maintaining its reputation for making everyday shopping an elevated and engaging experience.
Investments in team members remain a priority, as a great guest experience is inherently tied to a great team member experience. Advancements in technology are aimed at streamlining operations and empowering employees, such as the GenAI-powered store companion that answered hundreds of thousands of questions last year and self-checkout enhancements that improve accessibility for visually impaired guests. These initiatives ensure that team members can better assist guests while also optimizing operational efficiency.
Speed and convenience define Target’s approach to meeting evolving consumer expectations. Same-day shopping options, including Drive Up and same-day delivery powered by Circle 360, continue to see rapid growth and high customer satisfaction. These services have positioned Target among the top five grocery retailers in the U.S., outperforming many traditional grocery chains.
Beyond logistics, Target is revolutionizing digital experiences by infusing GenAI and social media signals into product discovery, helping guests make informed purchase decisions. AI-driven features like review summarization, enriched product detail pages, and a GenAI-powered gift finder exemplify how technology is enhancing the digital shopping experience.
Social media plays a significant role in modern shopping behaviors, transforming it into an always-on experience rather than a distinct transaction. Target’s strong presence on platforms like TikTok, Instagram, and Facebook allows it to engage with consumers in meaningful ways, leveraging AI to identify emerging trends and amplify relevant products more quickly. As the most engaged-with brand among big-box retailers on social media, Target is strategically positioned to capture digital traffic and drive conversion.
The company is also expanding its digital marketplace with a scalable and efficient approach. Partnerships, such as the one with Shopify, enable Target to rapidly onboard new and emerging brands, diversifying product offerings while maintaining logistical feasibility.
The Target Plus marketplace now represents around 10 percent of external search volume, demonstrating its growing impact on the company’s digital strategy. Additionally, Roundel, Target’s retail media business, continues to grow, driving increased profitability and engagement within the digital ecosystem.
Target’s approach to digital fulfillment prioritizes consumer choice, ensuring a seamless shopping experience across all channels. While in-store shopping remains the most profitable and iconic aspect of the brand, the digital channel is also profitable and becoming increasingly efficient.
The integration of stores as fulfillment centers for Drive Up, same-day delivery, and traditional shipping reinforces the symbiotic relationship between physical and digital retail. This interplay is crucial to Target’s long-term growth, with digital sales now accounting for 20 percent of total volume and third-party GMV on Target Plus seeing more than 35 percent growth last year.
With a uniquely omnichannel approach, Target continues to blend the best aspects of in-store shopping with a robust digital infrastructure, driving more than $15 billion in expected growth over the next five years. Through a combination of technology, logistics innovation, and strategic partnerships, Target remains committed to delivering ease, speed, and reliability while maintaining its signature fun and engaging shopping experience.
Rajani Baburajan
