TARGET Q4 2024 EARNINGS RECAP
Target Q4 2024 Earnings Recap & What It Means for 2025
Circle, Roundel & Retail Media Take Center Stage
If there’s one thing we love at DIGITS, it’s decoding the Target earnings call. And this March 4th, Target delivered a clear signal: Target Circle, Roundel, and marketing innovations are driving their next wave of growth. Whether you’re a vendor, retailer, or retail media nerd like us, there’s a lot to be excited about.
Target’s Big Growth Goals Released
Target unveiled plans to grow more than $15 billion in revenue growth over the next five years, fueled by loyalty programs, store remodels, and digital expansion. Post-Covid growth has slowed for Target, so brand partners should be excited to see Target putting plans in place. I’m sure it will come with an ask in funding to support the costs, so get ready brands!
Target Circle: Driving Loyalty & Insight
Target Circle has undergone a serious glow-up, transforming into a three-tiered system that’s delivering big engagement numbers:
- Free-To-Join Tier: Entry-level perks, access to majority of store-wide promotions and extra personalized offers
- Target Circle Card: Extra 5% off every day = win for loyal shoppers
- Target Circle 360: Paid membership that includes unlimited same-day delivery via Shipt (and more!) providing access to other retailers.
By the Numbers:
13 million new Circle members added in 2024
Circle 360 members shop 6x more often and spend 8x more than non-members
What’s New:
Target Circle 360 isn’t just about deliveries anymore. Members will soon get monthly gifts, VIP early access to deals, and… drumroll – a Marriott Bonvoy partnership rolling out this spring. Travel + loyalty? Yes, please.
Why It Matters:
Circle members are fueling personalization across Target’s ecosystem. The data from Circle isn’t just for promos, it powers Roundel targeting and marketing strategies. The result? More relevant experiences and higher guest satisfaction.
Roundel: Retail Media That’s Scaling Fast
Roundel, Target’s retail media powerhouse, brought in nearly $2 billion in 2024, and the company plans to double that over the next five years.
What’s Working:
- 35% growth in Target product ads alone last year
- Deep integration with Target Circle data means higher conversion rates
- Growing appeal to emerging brands, with Roundel’s smaller partner segment growing 40%
The Play:
Target is merging Roundel and social commerce teams, creating a scalable, efficient media ecosystem. Roundel isn’t just an ad platform, it’s a key driver of Target’s holistic guest strategy.
Marketing & the “Tarzhay” Effect
Target is leaning into its playful, premium persona. Whether it’s Taylor Swift’s Eras Tour Book driving Black Friday foot traffic or 2,000 new wellness products launched in January, Target knows how to keep things fresh.
- AI-powered personalization in digital channels
- Socially inspired shopping experiences
- A steady drumbeat of cultural moments and exclusive partnerships
- Store-as-hub model fueling same-day delivery and digital fulfillment
DIGITS’ Take on 2025: What Brands Should Do
If you’re a brand playing in Target’s sandbox, 2025 is the year to double down on loyalty and retail media.
Top Moves:
Get Circle-Smart: Target Circle is going big. Build offers and promos tailored for this high-value shopper segment. Approximately 50% of Target’s promotions are delivered via Circle and they have the best ROI of any channel at Target. If you aren’t running Circles…our question is why not?
Optimize Roundel Campaigns: With Roundel scaling rapidly, now’s the time to sharpen your creative and lean into first-party data targeting.
Stay Plugged Into Tarzhay Moments: Think exclusive drops, wellness waves, and trend-forward categories. Meet the guest where they’re already shopping.
Target Q4 2024 earnings recap: Target is betting big on Circle, Roundel, and immersive marketing experiences. At DIGITS, we’re already helping brands unlock the full potential of these tools.
You don’t need to be a giant to win in retail media. You just need the right strategy and the right partner.
Dave Glaza, Founder & CEO of DIGITS, remains committed to bringing digital capabilities to physical stores!
LinkedIn: https://www.linkedin.com/in/
