Target’s in-house advertising arm, Roundel, delivered a 38% year-over-year revenue increase in fiscal 2025, contributing an estimated $1.05 billion in incremental sales. Leveraging first-party shopper data across digital and in-store channels, Roundel’s operating margin exceeded 55%, substantially above the company’s overall retail margin of roughly 30%. Management highlighted that branded clients increased campaign spend by an average of 22% per quarter, driving double-digit growth in click-through rates and 18% higher basket size among exposed shoppers. As a result, Target expects retail media to account for nearly 8% of total operating income by the end of 2026, up from 5% in 2024.

Target Plus, the retailer’s third-party marketplace, expanded from 2,700 active sellers in 2023 to over 5,200 by Q4 2025, boosting gross merchandise volume (GMV) by 45% to $2.3 billion. The platform’s take-rate of 15% translated into approximately $345 million in net fees, helping to offset a 1.3% decline in same-store sales during the holiday quarter. Integration of Target’s fulfillment network reduced average delivery times by 12%, raising seller satisfaction scores from 78% to 85% year-over-year. Executives noted that marketplace contribution margin exceeded 40%, underscoring the role of third-party technology in sustaining overall profitability despite competitive sales headwinds.