Target Corp. is ramping up investment in its third-party online marketplace, Target Plus, as it searches for growth in a turbulent retail environment marked by cooling consumer demand and persistent economic uncertainty.
On its first-quarter earnings call, the retailer reported that Target Plus grew its gross merchandise volume (GMV) by more than 20% year over year, also adding hundreds of new sellers. The platform has emerged as a bright spot in Target’s digital strategy, with executives setting their sights on $5 billion in GMV by 2030. Key category expansions — including home and apparel — are helping fuel that momentum, particularly as shoppers demand greater assortment and convenience.
“We’re leaning into growth in our third-party digital marketplace, Target Plus, as a way to deliver even more of what our guests want — style, value, and ease,” said Rick Gomez, chief commercial officer. “We’re seeing double-digit growth here, and this platform is a powerful complement to our first-party assortment.”
Target is No. 5 in the Top 2000. The database is Digital Commerce 360’s ranking of North America’s online retailers by web sales. Target is also No. 80 in the Global Online Marketplaces Database, which ranks the 100 largest global marketplaces by third-party gross merchandise value (GMV).
Target Plus online marketplace growth
The online marketplace gains come at a critical time. Target reported a 2.8% drop in comparable sales for the quarter, driven by weakness in discretionary categories and declines in both customer traffic and average basket size. Mounting concerns over new tariffs and wavering consumer confidence have further pressured spending.
Still, Target’s digital business offered some resilience. Same-day services, including Drive Up and the Target Circle 360 delivery program, posted sturdy growth. In a bid to bolster its value proposition, Target has also removed price markups on same-day delivery orders from more than 100 retail partners through its Shipt service.
The push to scale Target Plus mirrors broader trends across the industry, as retailers like Walmart and Amazon grow their own marketplaces to diversify offerings and generate more asset-light revenue. For Target, the strategy is also about future proofing.
“Target Plus, along with our design collaborations and digital fulfillment enhancements, are key to navigating near-term volatility and positioning Target for sustainable, profitable growth,” said CEO Brian Cornell.
To further accelerate transformation, Target announced the creation of a new Enterprise Acceleration office, tasked with driving cross-functional agility. Veteran executive Michael Fiddelke will lead the effort.
With the back-to-school season looming and a high-profile summer release of the Nintendo Switch 2 on deck, all eyes will be on whether Target’s marketplace momentum can help counterbalance broader consumer pullback and discretionary softness.
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