Over the past few decades, Target has carefully cultivated an enviable position in the ruthlessly competitive world of retail. By combining affordability with trendy products and a pleasant shopping experience, Target has managed to make "cheap chic" its calling card. However, executing this strategy requires a deep understanding of the core Target customer and what makes them tick.
In this article, we‘ll take an in-depth look at Target‘s target market, including key demographics, purchase behavior, and psychographics. We‘ll also examine how Target‘s customer strategy impacts its competitive positioning and outlook for the future.
Target‘s Core Customer: A Demographic Profile
Target‘s shoppers are often described as younger, more affluent, and more style-conscious than the average American consumer. But what does the data actually show? Let‘s break it down:
Gender
Women are the engine that powers Target‘s business, accounting for 62% of the retailer‘s total customer base.[^1] This female skew is even more pronounced in certain categories like apparel and beauty, where women make up 80%+ of purchasers.[^2]
Age
Millennials (born 1981-1996) are currently Target‘s largest generational cohort, making up 37% of its adult customers.[^3] However, Gen Z (born 1997-2012) is quickly gaining ground as they enter their prime earning and spending years. By next year, Gen Z‘s spending power is predicted to top $33 trillion globally and account for over 25% of Target‘s sales.[^4]
Target also remains popular with Gen X (23% of shoppers) and Baby Boomers (19%), although it does somewhat underindex with seniors 70+ (9%).[^3]
Income
While not a true luxury player, Target attracts a relatively affluent clientele for a mass merchant. The typical Target shopper earns around $65,000 per year.[^5] Over 60% have an annual household income exceeding $50,000, and 1 in 4 earns more than $100,000.[^5]
This positions Target well above competitors like Walmart ($55,000 average income) and Dollar General ($46,000), though still below department stores like Macy‘s ($81,000) or specialty retailers such as Lululemon ($112,000).[^6]
Race/Ethnicity
Target‘s customer base generally mirrors the overall U.S. population in terms of racial and ethnic diversity. Approximately 63% of Target shoppers are White/Caucasian, 18% are Hispanic, 11% are African American, and 5% are Asian.[^7]
That said, the Hispanic segment is growing rapidly, up from just 10% of Target‘s customer mix in 2012.[^8] Given that Hispanics are now the largest U.S. minority group and accounted for over half of total population growth in the past decade, this is a trend worth watching.[^9]
Family Status
Parenthood is practically a rite of passage for the Target shopper. 42% of Target‘s customers have children under 18 at home, well above the U.S. average of 31%.[^10] And for many of them, Target is their first stop after the pregnancy test turns positive, thanks to strategic investments in areas like baby registries and family-friendly perks.
Geography
True to its name, Target blankets the U.S., with 75% of the population now living within 10 miles of a store.[^11] However, the retailer‘s footprint skews suburban, with a slight underrepresentation in rural and urban core areas. 85% of Target‘s stores are in suburban locations, compared to 71% for Walmart.[^12]
The Target Shopper Mindset
A discussion of demographics only scratches the surface in understanding the Target customer. Equally important is diving into the psychographics – the shopper values, motivations, and perceptions that guide their relationship with Target. A few key themes emerge:
Affordable Quality
Target shoppers want a good deal, but not at the expense of their standards. 89% say they are always looking for the best value for money, and 86% believe that Target offers competitive prices.[^13] However, Target customers also have discerning tastes. 84% say it‘s important for their products to be high quality, and Target shoppers are 27% more likely than the average consumer to prefer up-scale brands.[^14]
Trend-Forward Style
Target customers fancy themselves to be on the leading edge of style. 61% say they‘re usually one of the first to try new products, compared to 50% of total U.S. shoppers.[^15] They look to Target not just to meet their basic needs, but for creative inspiration. For example, 84% of Target apparel shoppers say the retailer helps them put looks together.[^16]
Convenience
The typical Target shopper is busy and often pressed for time. 68% are looking for "one-stop shopping", and 59% say they appreciate retailers that "make my life easier".[^17] This is where Target‘s multi-category assortment, easy-to-shop store layout, and expanding omnichannel capabilities come into play. For instance, during the 2021 holiday season, 30% of Target‘s sales were fulfilled by its stores, either through pick-up orders or same-day delivery.[^18]
Finally, Target customers want their purchases to reflect their principles. 82% say it‘s important to buy from companies that align with their values.[^19] Target leans into this with initiatives around diversity, sustainability, LGBTQIA+ inclusion, and community support. Case in point: Target was one of the first retailers to embrace gender-neutral store signage and product labeling.
The Target Shopping Habit
With a firm grasp of who shops at Target and why, let‘s explore some key aspects of their behavior:
Shopping Frequency
On average, Target sees 34 million customers per week.[^20] The typical shopper visits every 7-8 weeks and spends around $47 per trip.[^21] Interestingly, this is one area where Target has been steadily ceding ground to competitors. A decade ago, Target customers shopped the store 2-3 times per month on average.[^22]
Basket Composition
During an average trip, the Target shopper picks up 11-20 items across 3-4 different categories.[^23] The most commonly purchased items are groceries, household essentials, personal care products, and affordable indulgences. Target has been particularly focused on expanding its food & beverage penetration, which now accounts for over 20% of sales, up from just 2% in 2008.[^24]
Channel Engagement
While Target is investing heavily in digital, physical stores still drive the vast majority (96%) of its revenue.[^25] However, digital is becoming an increasingly important touchpoint. Target‘s digital sales have grown at a 20%+ annual clip for the past 7 years, reaching $26 billion in 2021.[^26] Mobile is a key growth driver, with the Target app seeing more than 220 million digital visits per month.[^27]
Target has cultivated a fiercely loyal fan base. 42% of Target shoppers say it‘s their favorite place to shop, and 90% plan to shop Target as much or more in the future.[^28] The Target Circle loyalty program, launched in 2019, now boasts over 100 million members who account for 50%+ of the retailer‘s sales.[^29]
That said, Target isn‘t immune to competition. The typical shopper spends just 31% of their disposable income at Target, with the rest going to the likes of Walmart, Amazon, Costco, and others.[^30] Continuing to grow share of wallet is an ongoing priority.
Keeping the Bullseye Bright
Target‘s success to date has been built on a clear understanding of its core customer. But as that customer evolves, so too must Target. Here are some of the key ways the retailer is working to maintain its edge:
Doubling Down on Differentiation
Exclusivity has always been part of Target‘s secret sauce. Its private label portfolio now spans 48 brands and accounts for over 1/3 of sales.[^31] Target is also betting big on limited-time collaborations with trendy outside partners – recent examples include Levi‘s, Stoney Clover Lane, and Tabitha Brown. These special collections drive traffic, brand buzz, and full-price selling.
Expanding Inclusive Offerings
As the American population diversifies, Target is evolving its assortment to follow suit. In 2021 the retailer added products from 200+ new Black-owned brands and now carries over 150 Latino-owned brands across the store.[^32] Target has also launched dedicated product lines to serve niche segments such as adaptive apparel for children with disabilities.
Embracing Localization
While standardization was once the norm, Target is increasingly tailoring its stores to reflect local tastes and needs. For example, the retailer now operates 260+ small-format stores customized for urban markets, college campuses, and tourist destinations.[^33] Even its core suburban fleet is getting more localized touches, from curated product mixes to bilingual signage and staffing.
Redefining Convenience
As digital reshapes consumer expectations, Target is aggressively investing to create a seamless omnichannel experience. The retailer now offers curbside pick-up at 95% of its stores, with orders ready in 2 hours on average.[^34] Same-day delivery via Shipt is available for 100,000+ items. And inside stores, Target is rolling out tech-enabled services like self-checkout and mobile payment.
Preparing for Demographic Destiny
Looking ahead, America is poised to undergo some profound demographic shifts. Over the next 2 decades, all of U.S. population growth will come from groups other than non-Hispanic Whites.[^35] Gen Z will become our most diverse generation yet.[^36] And amid declining birth rates and rising longevity, the number of Americans age 65+ will jump from 17% today to 23% by 2060.[^37]
Target will need to proactively adapt to these realities to stay relevant. That means deeply understanding the needs of multicultural consumers, tailoring offerings for aging shoppers, and finding new ways to win with increasingly digital-native youth. The retailers that get ahead of these trends will be the ones best positioned for the decades ahead.
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