Target online sales continued to grow year over year in its fiscal Q4 2025, even as total sales maintained a downward trend.
Total sales at Target decreased slightly to $30.45 billion in its fiscal Q4 2025, which ended Jan. 31, 2026. That marked a 1.5% decrease from $30.92 billion in the prior-year period.
For its full fiscal 2025, Target sales decreased at a similar rate. They fell to $104.78 billion, about a 1.7% decline from $106.57 billion.
CEO Michael Fiddelke told investors on Target’s quarterly earnings call that the retailer’s “sales trends have improved in recent months.” He noted that Target’s core consumer base is “digitally fluent.”
“Target is not an everything store,” Fiddelke said. “That’s not what guests want from us. They want a strong trend-forward assortment that they can trust to deliver quality and value.”
He noted a strategic initiative called Fun101. He described it as “a multiyear transformation from ‘hardlines,’ which many retailers sell, to a more immersive trend-forward approach to sports, play, gadgets and pop culture. This is an area where Target has a right to win and our guest base loves to shop.”
The retailer will also apply this approach to categories such as baby, home, food and beverage, and beauty, he said. Target intends to reposition its assortment and floor plans “to bring newness to all 2,000 stores this year,” he added.
Target is No. 5 in the Top 2000 Database. The database is Digital Commerce 360’s ranking of North America’s online retailers by web sales.
Target is also No. 64 in the Global Online Marketplaces Database, which ranks the 100 largest global marketplaces by third-party gross merchandise value (GMV).
Target online sales in Q4 2025
In its fiscal Q4 2025, Target online sales increased 1.9% year over year. That compares to 8.7% growth the year before.
Target’s ecommerce sales in Q4 accounted for 23.7% of total sales, up from 22.8% the year before.
For its full-year fiscal 2025, Target online sales increased 3.1% year over year. That followed 7.5% ecommerce sales growth during Target’s fiscal 2025.
Furthermore, ecommerce accounted for 20.6% of all Target sales in its fiscal 2025. In 2024, that share was 19.6%.
Chief financial officer James Lee noted “robust growth and revenue” from Roundel (the company’s retail media network) and from third-party sellers on Target Plus (its online marketplace). He said Target Plus posted more than 30% growth in 2025.
Fiddelke said most Target customers’ experiences start with discovery on social media platforms and through digital search channels. As such, the retailer is investing in the top of the purchasing funnel to reach consumers on social media via influencers as well as through artificial intelligence (AI) conversational and search platforms.
“Digital discovery and loyalty are essential to an elevated guest experience,” Fiddelke said.
Fiddelke noted that Target Circle members spend triple as much as non-members. And Target Circle 360 members, who get unlimited same-day delivery, spend seven times more than non-members.
“Target Circle 360 continues to perform strongly by leveraging our fulfillment capabilities, according to Cara Sylvester, chief merchandising officer.
Target’s same-day deliveries increased more than 30% in 2025, she said. And Target Circle 360 membership has doubled.
How Target is approaching ecommerce order fulfillment
Lee noted that Target’s gross margin rate benefited from improved supply chain and digital fulfillment costs. He said Target’s nearly 2,000 stores are located within 10 miles of 75% of the U.S. population.
On top of that, Target stores fulfill more than 97% of the retailer’s sales, Lee said.
“Store investment is supply chain investment for us because of the role the stores play,” Fiddelke added.
“On the digital fulfillment side, our strategy and assets make us both fast and efficient,” Lee said. “All three of our same-day services — whether we’re talking about Drive Up, in-store pickup or rapid same-day delivery through Target Circle 360 — are already wicked fast, and they’re getting faster.”
He said Target’s same-day services generated more than $14 billion in sales during its full-year fiscal 2025. They accounted for two-thirds of total Target ecommerce sales that year, according to Lee.
“And we’re investing to make those services even faster and more efficient,” Lee said. “For the other one-third of our digital sales, which are in the form of brown boxes delivered to your homes, most of our volume is in markets where we’ve already enabled next-day fulfillment. And we plan to expand this capability into many more markets this year.”
Lee said Target’s fulfillment is already fast and cost-competitive. It’s also continuing to improve its efficiency, he said. Furthermore, Target owns all the core elements of its digital fulfillment, he said.
“When you look at all the elements of our digital ecosystem holistically, digital growth is healthy for our business and for our P&L overall,” Lee said.
How has Target supported digital growth?
Fiddelke said Target’s “explosive digital growth” has come with challenges.
“Don’t get me wrong,” he said. “I’m not wishing away for a second a $20 billion profitable digital business and the work our teams did to support that growth as it exploded through the pandemic and has continued to grow from there.”
Fiddelke said Target was putting packing stations throughout its stores to try to keep up with Target’s growing digital business at the height of the pandemic. Now, he said, Target can step back with the benefit of retrospect and learning to optimize its digital growth going forward.
Fiddelke also said Target has learned from its Chicago market that some of its stores have large enough backrooms and capacity to specialize in supporting ecommerce sales volume. It also learned to have “some other stores sit it out … we don’t need every store shipping boxes.”
“For some stores, the size of the in-store business should be the one and only thing we ask that team to focus on versus shipping boxes,” he said.
Percentages may not align due to rounding. Check back for more earnings reports. Click here to read last quarter’s article on Target earnings and online sales.
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