Executive Summary
This report provides a comprehensive analysis of Target Corporation's core audience demographics in the United States, based on research across public filings, media sources, trade coverage, and analyst reports. The analysis includes historical context, separate examinations of in-store and online customer bases, and identification of key demographic groups Target is currently struggling to reach.
In-Store Demographics
Target's in-store customers are predominantly female (74%), white/Caucasian (62%), middle-income (47%), with significant representation across Gen X (31%), Boomers (31%), and Millennials (29%). The typical in-store shopper is a millennial suburban mom with a household income of $80,000.
Online Demographics
Target's online customers show a more balanced gender distribution (51.8% male, 48.2% female), skew younger with stronger representation from Millennials (35%) and Gen Z (15%), and have slightly higher income levels. Online sales have grown from 8.8% of total sales in 2019 to 19.6% in 2024.
Struggling Demographics
Target is facing challenges reaching two key demographic groups: Black consumers and suppliers following DEI rollbacks, and Gen Z and affluent shoppers who are increasingly favoring competitors like Walmart.
Company Overview
Target Corporation is a general merchandise retailer headquartered in Minneapolis, Minnesota. As of February 2025, Target operates 1,978 stores across the United States and has approximately 450,000 employees. The company offers a wide range of products across categories including beauty and household essentials (29.57% of sales), food & beverage (22.59%), home furnishings & decor (16.79%), apparel & accessories (15.58%), and hardlines (15.28%).
Target positions itself as an "upscale discounter," offering stylish merchandise at affordable prices. This positioning has historically attracted middle and upper-middle-income shoppers, distinguishing Target from competitors like Walmart that focus more explicitly on low prices.
Key Business Statistics
- Over 30 million weekly customers shop in Target stores
- 80% of U.S. shoppers visit Target at least once a year
- Target.com received 164.9 million visits in August 2023
- The company has a $20 billion digital business that has more than tripled over the last five years
- Target fulfills more than 97% of its online orders via stores, highlighting its omnichannel approach
Historical Context
Target has evolved significantly over the decades, with corresponding shifts in its core audience demographics. The company has historically catered to a more affluent customer base compared to competitors like Walmart, positioning itself as a retailer offering "cheap chic" products that appeal to style-conscious consumers.
In the early 2000s, Target gained popularity among middle and upper-middle-income shoppers, particularly women, who appreciated the retailer's designer collaborations and stylish home goods at affordable prices. This led to the affectionate nickname "Tar-zhay" among millennials, highlighting the perceived upscale nature of the brand despite its discount store classification.
Following the 2008 financial crisis, Target adjusted its strategy to emphasize value while maintaining its design aesthetic, aiming to retain its core middle-income shoppers while also appealing to more price-sensitive consumers.
In 2020, following the murder of George Floyd near its Minneapolis headquarters, Target made significant commitments to diversity, equity, and inclusion (DEI). CEO Brian Cornell stated in 2023 that these DEI initiatives had "fueled much of our growth over the last 9 years." However, in January 2025, Target rolled back some of these initiatives, including commitments to add products from more than 500 Black-owned brands and spend $2 billion with Black-owned businesses by 2025.
In recent years, Target has faced increasing competition for younger shoppers, particularly Gen Z, who are increasingly favoring Walmart for both in-store and online shopping. This represents a significant shift from Target's traditional strength with millennials.
Online Sales Growth (2019-2024)
In-Store Customer Demographics
Target's in-store customer base shows distinct demographic patterns across multiple dimensions:
Age/Generation
Target's in-store customers span across multiple generations, with the following breakdown:
Gen X and Boomers+ each represent 31% of Target's in-store shoppers, followed closely by Millennials at 29%. Gen Z currently makes up only 9% of Target's in-store customer base.
Income
Target attracts customers across various income brackets, with a strong representation from middle-income households:
Nearly half (47%) of Target's in-store customers come from middle-income households ($40k-$125k), while high-income shoppers (over $125k) represent 32%. Low-income shoppers make up 21% of Target's in-store customer base.
Ethnicity
Target's in-store customer base shows the following ethnic distribution:
White/Caucasian customers represent the majority (62%) of Target's in-store shoppers. Hispanic/Latino (16%) and Black or African American (14%) customers form significant segments, while Asian customers represent 7% of the in-store customer base.
Gender
Target's in-store customers show a strong gender skew:
Female customers represent a substantial majority (74%) of Target's in-store shoppers, with males accounting for 25%.
Geography
Target's in-store customers are distributed across different geographic settings:
| Geographic Setting | Percentage |
|---|---|
| Rural | 23% |
| Suburban | 39% |
| Urban | 38% |
Target's in-store presence is strongest in suburban (39%) and urban (38%) areas, with rural customers representing 23% of the in-store customer base.
Typical In-Store Customer Profile
The Typical Target In-Store Shopper
- A white, female customer between the ages of 35-60 (Gen X or Boomer)
- From a middle-income household with annual income between $40,000-$125,000
- Living in a suburban or urban area
- Shops at Target approximately 23 times per year
- Has an annual buy rate of approximately $1,087
This aligns with Business Insider's description of the typical Target shopper as "a millennial suburban mom with a household income of $80,000."
Online Customer Demographics
Target's online customer base shows notable differences from its in-store shoppers across several demographic dimensions:
Age/Generation
Target's online customers show a different generational distribution compared to in-store shoppers:
Millennials represent the largest segment at 35% of Target's online shoppers, followed by Gen X at 28%. Notably, Gen Z has a stronger presence online (15%) compared to in-store (9%), while Boomers+ have a smaller share online (22%) compared to in-store (31%).
Age Breakdown
| Age Group | Percentage |
|---|---|
| 18-24 | 12.41% |
| 25-34 | 29.56% |
| 35-44 | 20.16% |
| 45-54 | 17.02% |
| 55-64 | 13.13% |
| 65+ | 7.72% |
The 25-34 age group represents the largest segment of Target's online shoppers at 29.56%, followed by the 35-44 age group at 20.16%. This aligns with the strong millennial presence in Target's online customer base.
Income
Target's online customers tend to have slightly higher income levels compared to in-store shoppers:
Middle-income households ($40k-$125k) represent 49% of Target's online customers, while high-income shoppers (over $125k) account for 33%. This suggests that online shopping at Target is slightly more popular among higher-income households compared to in-store shopping.
Gender
Target's online customers show a different gender distribution compared to in-store shoppers:
Unlike the in-store customer base which is predominantly female (74%), Target's online shoppers are more evenly split between male (51.8%) and female (48.2%). This represents a significant difference in gender distribution between online and in-store shopping channels.
Online Sales Growth
Target's online sales as a percentage of total sales have grown significantly in recent years:
| Year | Percentage of Total Sales |
|---|---|
| 2019 | 8.8% |
| 2020 | 17.9% |
| 2021 | 18.9% |
| 2022 | 18.6% |
| 2023 | 18.3% |
| 2024 | 19.6% |
Target's online sales have more than doubled as a percentage of total sales since 2019, growing from 8.8% to 19.6% in 2024. The most dramatic increase occurred between 2019 and 2020 (from 8.8% to 17.9%), likely accelerated by the COVID-19 pandemic.
Typical Online Customer Profile
The Typical Target Online Shopper
- A millennial (25-34 years old)
- Slightly more likely to be male than female
- From a middle to high-income household with annual income above $40,000
- Tech-savvy and comfortable with e-commerce
- Likely to use Target's app or website for shopping
Key Differences Between Online and In-Store Customers
- Gender Distribution: While in-store shoppers are predominantly female (74%), online shoppers are more evenly split between male (51.8%) and female (48.2%).
- Age/Generation: Online shoppers skew younger, with stronger representation from Millennials and Gen Z compared to in-store shoppers.
- Income Levels: Online shoppers tend to have slightly higher income levels, with stronger representation from middle and high-income households.
Demographics Target is Struggling to Reach
Based on recent company actions, market trends, and analyst reports, Target is currently facing challenges in effectively reaching two key demographic groups:
1. Black Consumers and Suppliers
Key Issues
- Rollback of DEI initiatives in January 2025
- Dropped commitment to add products from 500+ Black-owned brands
- Ended commitment to spend $2 billion with Black-owned businesses by 2025
- Reduced support for Black founders and suppliers
- Potential loss of Black consumer loyalty
Historical Context
- Made significant DEI commitments after George Floyd murder in 2020
- CEO Brian Cornell previously stated DEI "fueled much of our growth over the last 9 years"
- Faced backlash from some consumers and political pressure over DEI initiatives
- Competitors like Sephora and Costco maintained DEI commitments
Impact on Business
Target's rollback of DEI initiatives in early 2025 has potentially jeopardized its relationship with Black consumers and suppliers. According to CNBC reporting, "gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers."
"For small brands, but for any brands, really, it's a constant fight for relevance and for visibility. And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves."
2. Gen Z and Affluent Shoppers
Key Issues
- Losing Gen Z shoppers to Walmart
- Walmart saw 18% increase in younger shoppers' online purchases
- Target slower to adopt influencer-driven strategies
- Losing affluent shoppers ($100K+ income) to Walmart
- E-commerce growth lagging behind Walmart (22% growth)
Historical Context
- Traditionally strong with millennials ("Tar-zhay" reputation)
- Previously seen as the "fancier" alternative to Walmart
- Stock dropped 22% after missing profit forecasts in late 2024
- Struggling to maintain premium positioning while offering competitive prices
Impact on Business
Target has traditionally been popular with millennials, who affectionately referred to the retailer as "Tar-zhay" to highlight its perceived upscale nature compared to competitors like Walmart. However, recent reporting indicates that Target is "spiraling as Gen Z and affluent customers fall in love with Walmart."
"Target has been slower to adopt influencer-driven strategies for its marketplace, missing an opportunity to build similar momentum [with Gen Z]."
Executive and Analyst Perspectives
Target executives and industry analysts have provided valuable insights into the company's demographic challenges and strategies:
Target Executive Statements
Brian Cornell, CEO of Target
"DEI has fueled much of our growth over the last 9 years."
"Despite these headwinds, we're encouraged that operating income has grown 6.7% through the first three quarters of the year. We're highly confident in our proven long-term strategy and in our ability to move beyond this current volatility."
Michael Fiddelke, Chief Operating Officer
"We know that today's customers increasingly shop digitally. That's why we've invested in a powerful digital experience to help them find product more often than not in the palm of their hand and social and on our app, positioning Target to win in a world where the consumer purchase funnel is changing. And it's working. We have a $20 billion digital business that's hitting on all cylinders with nearly 9% growth in Q4."
Analyst Perspectives
Bank of America Analysts
"Target has not historically benefited from the same value perception as its large broadline peers [like Walmart and Costco Wholesale], [but] the retailer's recent focus on value positions it well to gain market share."
Jon Solorzano, Attorney at Vinson & Elkins
"Ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk. Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors."
Conclusion and Future Outlook
Target's core audience demographics reveal both strengths and challenges for the retailer. The company has built a strong customer base among middle-income, suburban shoppers, particularly women, who appreciate Target's blend of style and value. However, Target faces significant challenges in reaching and retaining two key demographic groups: Black consumers and suppliers following DEI rollbacks, and Gen Z and affluent shoppers who are increasingly favoring competitors like Walmart.
The company's online business has shown significant growth, with digital sales more than doubling as a percentage of total sales since 2019. The online customer base differs notably from in-store shoppers, with a more balanced gender distribution, younger age profile, and slightly higher income levels. This highlights the importance of Target's omnichannel strategy in reaching diverse customer segments.
Looking ahead, Target's ability to reconnect with key demographic groups will be crucial for its long-term growth and market position. The company's recent financial performance reflects these challenges, with its stock dropping 22% after missing profit forecasts in late 2024. To address these challenges, Target may need to:
- Reconsider its approach to diversity and inclusion, balancing business objectives with the demonstrated value of diverse product assortments and supplier relationships.
- Develop more effective strategies for reaching Gen Z consumers, potentially through enhanced influencer marketing and social media engagement.
- Strengthen its value proposition to compete more effectively with Walmart for price-sensitive shoppers while maintaining its differentiated brand identity.
- Continue investing in its digital experience to accelerate e-commerce growth and better serve its increasingly diverse online customer base.
- Leverage its store network for fulfillment and customer experience advantages, building on its successful strategy of fulfilling 97% of online orders through stores.