We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Retail Media & Marketplace Tech Unlock Profit Streams for Target
Read MoreHide Full Article
Key Takeaways
TGT is expanding high-margin revenues through its Roundel retail media network and Target Plus marketplace.
Roundel delivered mid-teens ad sales growth in Q3, driven by data-backed, targeted campaigns.
Target Plus posted nearly 50% GMV growth by adding sellers without holding inventory, boosting margins.
Target Corporation (TGT - Free Report) is leveraging its retail media and marketplace technology to unlock high-margin profit streams, even as overall sales face pressure. Its expanding digital ecosystem, anchored by the Roundel retail media network and Target Plus marketplace, is emerging as a key growth driver that strengthens profitability beyond traditional retail operations.
Roundel, Target’s retail media arm, reported mid-teen growth in ad sales in the third quarter of fiscal 2025, underscoring strong demand from brands seeking access to Target’s large, loyalty-driven customer base. Supported by the company’s first-party data ecosystem, particularly Target Circle, Roundel delivers highly targeted, measurable campaigns, offering superior returns compared with conventional media. Retail media contributes higher-margin revenues, helping improve the profit mix.
The Target Plus marketplace complements this growth, with gross merchandise value up nearly 50% year over year in the fiscal third quarter. By onboarding third-party sellers, Target broadens its assortment without holding inventory, while earning commissions and platform fees that enhance margins and reduce capital intensity. Marketplace growth significantly outpaced overall company sales, highlighting the platform’s scalability.
Technology investments further accelerate both platforms. AI-driven tools and data analytics improve ad targeting, campaign performance and seller productivity, while same-day delivery growth of more than 35% boosts traffic and monetization opportunities. Integration across retail media, marketplace, loyalty and fulfillment strengthens Target’s digital ecosystem and long-term earnings potential.
Together, Roundel and Target Plus provide resilient, asset-light profit streams that diversify revenues beyond core merchandise sales. These data-driven businesses position Target for sustainable growth and support long-term shareholder value.
WMT & BBY Boost Digital Innovation as TGT Expands Tech
Walmart Inc. (WMT - Free Report) continued to advance its digital initiatives in the third quarter of fiscal 2026, focusing on delivering more personalized, multi-modal and context-aware app experiences. Walmart is increasingly leveraging AI across operations, with more than 40% of new software code now AI-generated or AI-assisted, while also enhancing associate skills through OpenAI certifications and ChatGPT Enterprise access. Additionally, Walmart’s partnership with OpenAI enables customers to purchase products directly via ChatGPT, creating a more seamless, connected shopping experience across channels.
Best Buy Co., Inc. (BBY - Free Report) made strides in its digital transformation in third-quarter fiscal 2026 by driving app engagement, expanding personalization and enhancing online experiences, including improved TV shopping and faster delivery options. Best Buy’s growing online marketplace now hosts more than 1,000 sellers with 11X more SKUs, while ongoing improvements in fulfillment efficiency and returns convenience further strengthen the omnichannel experience. These efforts reinforce Best Buy’s position as a tech-focused, omnichannel retail leader.
Target’s Price Performance, Valuation & Estimates
The TGT stock has gained 9.5% in the past three months compared with the industry’s growth of 8.4%.
Image Source: Zacks Investment Research
Target’s forward 12-month price-to-earnings ratio of 13.17 reflects a lower valuation than the industry’s average of 31.17. TGT has a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TGT’s fiscal 2025 earnings implies a year-over-year decline of 17.6%, while the same for fiscal 2026 indicates growth of 5.9%. Earnings estimates for fiscal 2025 and 2026 have been upbound by 1 cent per share and unchanged, respectively, in the past 30 days.
Image: Bigstock
Retail Media & Marketplace Tech Unlock Profit Streams for Target
Key Takeaways
Target Corporation (TGT - Free Report) is leveraging its retail media and marketplace technology to unlock high-margin profit streams, even as overall sales face pressure. Its expanding digital ecosystem, anchored by the Roundel retail media network and Target Plus marketplace, is emerging as a key growth driver that strengthens profitability beyond traditional retail operations.
Roundel, Target’s retail media arm, reported mid-teen growth in ad sales in the third quarter of fiscal 2025, underscoring strong demand from brands seeking access to Target’s large, loyalty-driven customer base. Supported by the company’s first-party data ecosystem, particularly Target Circle, Roundel delivers highly targeted, measurable campaigns, offering superior returns compared with conventional media. Retail media contributes higher-margin revenues, helping improve the profit mix.
The Target Plus marketplace complements this growth, with gross merchandise value up nearly 50% year over year in the fiscal third quarter. By onboarding third-party sellers, Target broadens its assortment without holding inventory, while earning commissions and platform fees that enhance margins and reduce capital intensity. Marketplace growth significantly outpaced overall company sales, highlighting the platform’s scalability.
Technology investments further accelerate both platforms. AI-driven tools and data analytics improve ad targeting, campaign performance and seller productivity, while same-day delivery growth of more than 35% boosts traffic and monetization opportunities. Integration across retail media, marketplace, loyalty and fulfillment strengthens Target’s digital ecosystem and long-term earnings potential.
Together, Roundel and Target Plus provide resilient, asset-light profit streams that diversify revenues beyond core merchandise sales. These data-driven businesses position Target for sustainable growth and support long-term shareholder value.
WMT & BBY Boost Digital Innovation as TGT Expands Tech
Walmart Inc. (WMT - Free Report) continued to advance its digital initiatives in the third quarter of fiscal 2026, focusing on delivering more personalized, multi-modal and context-aware app experiences. Walmart is increasingly leveraging AI across operations, with more than 40% of new software code now AI-generated or AI-assisted, while also enhancing associate skills through OpenAI certifications and ChatGPT Enterprise access. Additionally, Walmart’s partnership with OpenAI enables customers to purchase products directly via ChatGPT, creating a more seamless, connected shopping experience across channels.
Best Buy Co., Inc. (BBY - Free Report) made strides in its digital transformation in third-quarter fiscal 2026 by driving app engagement, expanding personalization and enhancing online experiences, including improved TV shopping and faster delivery options. Best Buy’s growing online marketplace now hosts more than 1,000 sellers with 11X more SKUs, while ongoing improvements in fulfillment efficiency and returns convenience further strengthen the omnichannel experience. These efforts reinforce Best Buy’s position as a tech-focused, omnichannel retail leader.
Target’s Price Performance, Valuation & Estimates
The TGT stock has gained 9.5% in the past three months compared with the industry’s growth of 8.4%.
Image Source: Zacks Investment Research
Target’s forward 12-month price-to-earnings ratio of 13.17 reflects a lower valuation than the industry’s average of 31.17. TGT has a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TGT’s fiscal 2025 earnings implies a year-over-year decline of 17.6%, while the same for fiscal 2026 indicates growth of 5.9%. Earnings estimates for fiscal 2025 and 2026 have been upbound by 1 cent per share and unchanged, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.