Target’s main competitors are Walmart, Amazon, Costco and dollar stores such as Dollar General, plus department stores, category specialists, drug stores and supermarkets. In its fiscal 2025 10-K Target says it competes with “omnichannel retailers” of every kind, from wholesale clubs to online marketplaces, and that its position depends on how well it differentiates through design, style and value.
Target runs one segment selling a curated multi-category assortment through stores and digital channels. Stores fulfilled more than 97 percent of merchandise sales in each of the last three fiscal years, including Order Pickup, Drive Up and Same-Day Delivery.
02
Who it names as rivals
The 10-K lists department stores, off-price general merchandise retailers, wholesale clubs, category-specific retailers, drug stores, supermarkets, direct-to-consumer brands and online marketplaces.
03
How it tries to stand apart
Target says it differentiates through design, style and value. About thirty percent of merchandise sales come from owned and exclusive brands such as Good & Gather and Room Essentials.
04
Loyalty and membership
Target Circle offers a free tier, a Target Circle Card with a 5 percent discount on nearly all purchases, and a paid Target Circle 360 membership with same-day delivery, its answer to Amazon Prime, Walmart+ and club memberships.
What changed in 2025-26
Sales fell while rivals grew
Target’s net sales were $104.8 billion in fiscal 2025, down 1.7 percent, with comparable sales down 2.6 percent. In the same period Walmart’s net sales rose 4.7 percent to $706,413 million (fiscal year to 31 January 2026).
A new CEO
Michael Fiddelke, previously Chief Operating Officer, became CEO on 1 February 2026; Brian Cornell stayed on as Executive Chair, according to Target’s August 2025 filing.
Digital and advertising
Digitally originated sales were 20.6 percent of merchandise sales in fiscal 2025, up from 19.6 percent. Advertising revenue, which Target earns through its Roundel retail media network, rose to $915 million from $649 million.
Target’s 10-K warns that shoppers may use third-party channels and AI tools to start searches and place orders, making it dependent on those platforms’ algorithms. Walmart’s 10-K likewise names emerging agentic platforms as a way customers now shop and compare prices.
Target and its main competitors (latest fiscal year)
Target
How it competes with TargetDesign-led general merchandise and food, stores as fulfilment hubs
Scale (latest 10-K)Net sales $104,780 million, fiscal 2025; 1,995 stores at 31 January 2026
Walmart
How it competes with TargetEveryday low prices, groceries, Walmart+ membership
Scale (latest 10-K)Net sales $706,413 million, fiscal year to 31 January 2026
Amazon
How it competes with TargetOnline selection, price and fast delivery; Prime
Scale (latest 10-K)Total net sales $716,924 million, 2025 (all segments, including AWS)
Costco
How it competes with TargetMembership warehouse clubs, bulk groceries
Scale (latest 10-K)939 warehouses at 30 August 2026; total revenue $303,154 million, fiscal 2026
Dollar General
How it competes with TargetSmall-format discount stores close to home
Scale (latest 10-K)20,959 stores as of 27 February 2026; net sales $42,724.4 million, fiscal 2025
What it means for you
If you sell to Target, pitch for the owned-brand and design-led assortment, which is where Target says it differentiates.
Compare retailers on the same period: Walmart and Target close their year in late January, Costco in late August, Amazon in December.
Brands should budget for retail media: Target's Roundel advertising revenue grew faster than its merchandise sales in fiscal 2025.
Watch digitally originated sales and comparable sales together; the first rose while the second fell at Target in fiscal 2025.
Prepare product data for AI shopping assistants, since both Target and Walmart now name them as a channel customers use.
The Business Engineer lens
Target competes on curation while Walmart, Amazon and Costco compete on scale, and fiscal 2025 showed scale winning on sales growth. The Business Engineer view: if AI agents start doing the comparison shopping, the advantage shifts to whoever controls the data and the fulfilment, which is why Target leans on stores as hubs and on its own brands.
Walmart, Amazon and Costco are the largest; dollar stores, department stores, category specialists, drug stores and supermarkets also compete for the same shoppers.
How does Target differ from Walmart?
Target says it differentiates through design, style and value and a curated assortment, with about thirty percent of merchandise sales from owned and exclusive brands.
How big is Target?
Net sales were $104.8 billion in fiscal 2025 and Target operated 1,995 stores at 31 January 2026.
Who is Target's CEO?
Michael Fiddelke, since 1 February 2026; Brian Cornell is Executive Chair.
The complete explainer, cleaned up and reformatted for mobile.
Target faces competition from various players in the retail industry. Competitors include brick-and-mortar retailers such as Walmart, Amazon, Costco, and Kroger. Online retailers like Amazon, Walmart, eBay, and Alibaba also pose a challenge. Specialty retailers such as Best Buy, Home Depot, Lowe’s, and Macy’s offer unique product selections. Discount retailers like Walmart, Costco, Dollar General, and Dollar Tree provide competitive pricing options.
Walmart
DescriptionA multinational retail corporation known for its supercenters and discount stores. Walmart competes with Target in various retail segments, including discount retail and grocery.
Key InsightsWalmart is a major competitor in the retail industry, competing with Target in discount retail and grocery segments.
Competitive OverlapBoth compete in the retail industry, offering discount retail and grocery products.
DifferentiationWalmart’s extensive network of supercenters and discount stores.
Amazon
DescriptionA multinational e-commerce and technology company known for online retail and cloud computing. Amazon competes with Target in e-commerce and online retail.
Key InsightsAmazon is a dominant player in e-commerce and online retail, competing with Target in the digital shopping space.
Competitive OverlapBoth compete in e-commerce and online retail, offering a wide range of products online.
DifferentiationAmazon’s focus on online shopping and Prime membership benefits.
Costco Wholesale
DescriptionA membership-based warehouse club known for bulk sales of groceries and other products. Costco competes with Target in the warehouse club and grocery segments.
Key InsightsCostco operates as a warehouse club and competes with Target in segments such as bulk grocery sales.
Competitive OverlapBoth compete in the retail industry, particularly in the warehouse club and grocery categories.
DifferentiationCostco’s membership-based model and bulk product offerings.
Kohl’s
DescriptionA department store chain known for clothing, home goods, and accessories. Kohl’s competes with Target in the department store and apparel segments.
Key InsightsKohl’s is a department store chain, competing with Target in segments such as clothing and home goods.
Competitive OverlapBoth compete in the retail industry, particularly in the department store and apparel categories.
DifferentiationKohl’s emphasis on clothing and frequent promotions.
Best Buy
DescriptionA multinational consumer electronics retailer known for electronics, appliances, and technology products. Best Buy competes with Target in consumer electronics and tech retail.
Key InsightsBest Buy specializes in consumer electronics and competes with Target in segments like electronics and tech products.
Competitive OverlapBoth compete in the consumer electronics and technology retail market.
DifferentiationBest Buy’s specialization in consumer electronics and tech services.
Dollar General
DescriptionA chain of variety stores known for budget-friendly goods and household essentials. Dollar General competes with Target in discount retail and value-oriented shopping.
Key InsightsDollar General operates discount stores and competes with Target in segments such as discount retail and household essentials.
Competitive OverlapBoth compete in the discount retail and value-oriented shopping market.
DifferentiationDollar General’s focus on budget-friendly goods and convenience.
Macy’s
DescriptionA department store chain known for clothing, accessories, and home goods. Macy’s competes with Target in the department store and fashion segments.
Key InsightsMacy’s operates department stores and competes with Target in segments such as clothing and home goods.
Competitive OverlapBoth compete in the department store and fashion retail market.
DifferentiationMacy’s emphasis on fashion, designer brands, and special events.
Home Depot
DescriptionA home improvement retailer known for hardware, building materials, and home improvement products. Home Depot competes with Target in the home improvement and DIY segments.
Key InsightsHome Depot specializes in home improvement products and competes with Target in segments like home improvement and DIY.
Competitive OverlapBoth compete in the home improvement and DIY retail market.
DifferentiationHome Depot’s focus on hardware and professional-grade tools.
Lowe’s
DescriptionA home improvement retailer known for appliances, tools, and home improvement supplies. Lowe’s competes with Target in the home improvement and DIY segments.
Key InsightsLowe’s offers home improvement supplies and competes with Target in segments like home improvement and DIY.
Competitive OverlapBoth compete in the home improvement and DIY retail market.
DifferentiationLowe’s emphasis on appliances and outdoor equipment.
BJ’s Wholesale Club
DescriptionA membership-based warehouse club known for bulk sales of groceries and consumer products. BJ’s Wholesale Club competes with Target in the warehouse club and grocery segments.
Key InsightsBJ’s Wholesale Club operates as a membership-based warehouse club and competes with Target in segments such as bulk grocery sales.
Competitive OverlapBoth compete in the retail industry, particularly in the warehouse club and grocery categories.
DifferentiationBJ’s Wholesale Club’s membership-based model and bulk product offerings.
Brick-and-Mortar Retailers
Walmart: A multinational retail corporation operating discount stores, supercenters, and grocery stores.
Amazon: An e-commerce company offering a wide range of products and services.
Costco: A membership-based warehouse club offering a variety of merchandise.
Kroger: A retail company operating supermarkets, convenience stores, and jewelry stores.
Online Retailers
Amazon: An e-commerce company offering a wide range of products and services.
Walmart: A multinational retail corporation operating discount stores, supercenters, and grocery stores.
eBay: An online marketplace connecting buyers and sellers globally.
Alibaba: A multinational conglomerate specializing in e-commerce, retail, and technology.
Specialty Retailers
Best Buy: A multinational consumer electronics retailer.
Home Depot: A home improvement retailer offering construction products and services.
Lowe’s: A retail company specializing in home improvement products and services.
Macy’s: A department store chain offering a wide range of products.
Discount Retailers
Walmart: A multinational retail corporation operating discount stores, supercenters, and grocery stores.
Costco: A membership-based warehouse club offering a variety of merchandise.
Dollar General: A variety store chain offering discounted products.
Key Highlights
Competition in the Retail Industry: The target company faces strong competition from various players in the retail sector, including both brick-and-mortar and online retailers.
Brick-and-Mortar Retailers: Major competitors like Walmart, Amazon, Costco, and Kroger operate physical stores that offer a diverse range of products, including groceries, electronics, and general merchandise.
Online Retailers: Online giants like Amazon and Walmart also compete with the target company, providing customers the convenience of shopping from the comfort of their homes and offering a wide array of products.
Specialty Retailers: Specialty retailers like Best Buy, Home Depot, Lowe’s, and Macy’s focus on specific product categories, such as electronics, home improvement, and fashion. These retailers attract customers seeking unique selections and expertise in those areas.
Discount Retailers: Discount retailers, including Walmart and Costco, offer competitive pricing options, attracting cost-conscious consumers.
Diverse Product Offerings: The competition covers a broad spectrum of products, ranging from groceries and electronics to home improvement and fashion items, giving consumers a wide range of choices.
Marketplace Dominance: Walmart and Amazon are prominent players in both the brick-and-mortar and online retail spaces, with a significant market share and strong brand recognition.
Membership-Based Models: Both Costco and Amazon offer membership-based services, providing exclusive benefits to members and fostering customer loyalty.
Global Reach: Companies like eBay and Alibaba operate on a global scale, connecting buyers and sellers across different countries, making them significant competitors in the international market.
Customer Preferences: The diverse competition reflects changing consumer preferences, with options for traditional in-store shopping, online convenience, specialized expertise, and budget-friendly choices.
Innovation and Technology: E-commerce and technological advancements have reshaped the retail landscape, requiring companies to adapt and innovate to remain competitive.
Price Competition: Discount retailers like Walmart, Costco, Dollar General, and Dollar Tree emphasize competitive pricing, driving price-conscious customers to their stores.
Product Quality and Expertise: Specialty retailers like Best Buy, Home Depot, Lowe’s, and Macy’s differentiate themselves through product expertise, high-quality offerings, and personalized shopping experiences.
Omnichannel Strategies: Many retailers are adopting omnichannel approaches, integrating online and offline shopping experiences to cater to the evolving preferences of consumers.
Market Dynamics: Intense competition encourages retailers to continually improve their strategies, customer experiences, and offerings to stay ahead in the fast-paced retail industry.
With over $572 billion in net sales in 2022, Walmart operates a differentiated Omni business model with three primary units comprising Walmart U.S., Walmart International, and Sam’s Club (a membership-only warehouse club), together with Walmart+. This subscription service includes unlimited free shipping, unlimited delivery from its stores, and discounts launched in 2021.
Walmart generated over $572 billion in revenue in 2022 and over $13.6 billion in net profits in the same year. Compared to over $559 billion in revenue in 2021 and over $13.5 billion in net profits.
Walmart’smission can be summarized as “helping people around the world save money and live better โ anytime and anywhere โ in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy.
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.
From humble beginnings just over 50 years ago, Walmart has become the worldโs largest retail company. A single small discount store in Arkansas has now expanded to over 11,000 stores in 28 countries.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
