Target Corporation (TGT) is an American mass-marketretail company headquartered inMinneapolis. It operates large-scale food and general-merchandisediscount stores throughout the United States and ranks among the country’s largest discount retailers. Its red bull’s-eye logo is one of the most recognizable corporate symbols in theUnited States. Target competes with other mass-market retailers such asWalmart (WMT) andCostco (COST) and became known in the 2000s for introducing limited-edition product lines created with famous designers.

Early history (1902–1961)

The company traces its origins to 1902, when banker and real estate investorGeorge Draper Dayton incorporated Goodfellow Dry Goods in Minneapolis. The store was renamed Dayton Dry Goods Company the following year, and in 1911 it became the Dayton Company. Over the following decades, the business grew into a regionaldepartment store chain. By the middle of the 20th century, Dayton’s stores were well established in the UpperMidwest.

Launch of Target stores (1962)

On May 1, 1962, Dayton’s opened the first Target store in Roseville,Minnesota, as a discount arm of its department store business. The concept reflected a wider retail trend of the early 1960s, when chains were experimenting with discount formats that offered department-store goods at lower prices by reducing services and overhead.

That same year, several other discount chains opened their first stores, includingKmart (developed by theS.S. Kresge Company), Walmart (founded bySam Walton), and Woolco (a division ofF.W. Woolworth Co.). Their emergence reflected suburban growth and increasing consumerdemand for lower prices and self-service shopping. Target’s approach quickly gained traction. By 1975, it had become Dayton-Hudson Corporation’s leading revenue producer, and four years later its annual sales surpassed $1 billion.

As Target grew, Dayton-Hudson also expanded through acquisitions. It merged with the J.L. Hudson Company in 1969, added the California-basedMervyn’s chain in 1978, and purchasedMarshall Field & Company in 1990.

During the 1990s, Target introduced new store formats to attract a broader range of customers. The first Target Greatland, which offered a wider selection of goods, opened in 1990, and the first SuperTarget, featuring a completesupermarket, pharmacy, and more, debuted in 1995.

Corporate name change (2000–present)

To emphasize the prominence of its discount stores, Dayton-Hudson was renamed Target Corporation in 2000. The company sold Mervyn’s and Marshall Field’s in 2004 to focus exclusively on the Target name. By the early 21st century, Target had differentiated itself from rivals by offering upscale, stylish products at competitive prices. Collaborations with designers such asIsaac Mizrahi,Zac Posen, andJason Wu generated considerable attention and reinforced Target’s reputation for “cheap chic.”

The company continued to test new formats, opening CityTarget stores beginning in 2012 to appeal to urban shoppers. An ambitious expansion intoCanada in 2013 ended in failure; Target closed all of its Canadian stores by 2015 after struggling with supply chain issues and weak consumer response.

Leadership, performance, and strategy

For most of its history Target was led by executives promoted from within, often with backgrounds in the company’s department stores. That pattern changed in 2014 when Brian Cornell, a formerPepsiCo (PEP) and Sam’s Club executive, was appointed chairman andchief executive officer (CEO). Cornell was the first external leader in the company’s history.

During his tenure, Cornell oversaw efforts to renovate stores, broaden the variety and availability of grocery and home goods, and introduce services such as curbside pickup and same-day delivery, using stores as fulfillment centers for online orders. These moves were part of Target’s strategy to compete with large rivals, especially Walmart andAmazon.com (AMZN).

Despite those efforts, Target’s sales and profitability declined in the mid-2020s. Comparable sales fell 1.9% in fiscal 2024 (which ended February 1, 2025). In-store sales dropped while online sales grew modestly. Profit margins narrowed as the company faced markdowns and inventory problems. Annual revenue was $106.6 billion in fiscal 2024, compared with $107.4 billion in fiscal 2023 (a 53-week year) and $109.1 billion in fiscal 2022. Over the five years through August 2025, Target’s stock lost about 23%, in contrast to large gains at Walmart and Costco.

In August 2025, Target said that its chief operating officer, Michael Fiddelke, would succeed Cornell as chief executive officer on February 1, 2026, with Cornell to become executive chairman. Fiddelke, a longtime employee, had earlier held senior roles including chief financial officer. The decision drew mixed reactions from analysts. Some welcomed the continuity, while others questioned whether new leadership was needed to address the company’s sales declines.

Workforce and social impact

The murder ofGeorge Floyd in Minneapolis in 2020 prompted a strong response from Target, which is headquartered near where the killing occurred. CEO Brian Cornell said Floyd “could have been one of my Target team members.” In the months that followed, the company launched a high-profilediversity, equity, and inclusion (DEI) initiative. It created the Racial Equity Action and Change (REACH) committee, pledged to increase its Black workforce by 20% over three years, and committed $2 billion to Black-owned businesses by 2025, including scholarships for students atHistorically Black Colleges and Universities (HBCUs). Target rebuilt and reopened its Minneapolis store that had been destroyed in the protests, hiring minority-owned contractors and incorporating community feedback. The company’s efforts earned national recognition, including an award in 2022 from the Executive Leadership Council, anonprofit organization of Black corporate executives.

By 2025, however, Target had scaled back many of its initiatives. It ended its representation pledge and disbanded its equity committee, broadened its supplier-diversity office to a general “supplier engagement” group, and withdrew from outside diversity rankings such as theHuman Rights Campaign’s corporate equality index. At the same time, Target faced boycotts and threats after right-wing activists and state officials criticized itsPride Month merchandise. The company removed some items, citing employee safety, but the decision drew criticism fromcivil rights advocates andLGBTQ groups. Twin Cities Pride, Minnesota’s second-largestPride festival, ended an 18-year sponsorship with Target in protest. Executives later acknowledged that the backlash to the rollback of its DEI program contributed to weaker sales.

Environmental goals

Like many other large retailers, Target has announced long-term environmental goals, including a pledge to reach net-zerogreenhouse gas emissions by 2040.

Tariffs and trade pressures

After PresidentDonald Trump returned to theOval Office in January 2025, his administration imposed new tariffs on imported goods that became a major drag on Target’s business. Executives said the duties raised costs and unsettled consumers, particularly fordiscretionary goods such as apparel, home furnishings, and electronics, which make up much of Target’s sales. Comparable sales fell 3.8% in the first quarter of fiscal 2025, and same-store sales dropped again in the second quarter even as earnings narrowly beat lowered expectations.

Target has sought to offset tariff costs by negotiating with suppliers, changing the timing and quantity of orders, and sourcing more products outsideChina to reduce the impact of Trump’s tariffs on Chinese imports, which carried a 30% duty by 2025. The company reduced the share of its private-label goods produced in China to 30% in 2025 from about 60% in 2017, with plans to lower that figure to 25% by 2026. But analysts warned that Target remains more exposed to tariffs than Walmart, because Target sells fewer groceries and more imported discretionary goods.Bank of America (BAC) estimated that Target might need to raise prices by about 8% to offset the tariffs fully, nearly double the rate needed at Walmart.

Challenges and competitive landscape

Target faces intense competition from Walmart, Costco, and Amazon, whose larger scale and grocery strength have drawn shoppers who prize low prices and convenience. The company has also struggled with operational problems, including inventory missteps and slowing demand for discretionary goods. These pressures, combined with tariff-related cost increases and backlash to its DEI rollback, have weighed on sales and contributed to a loss of market share.