Our CPG by MPG team had the opportunity to attend the recent Target Partner Summit, where CEO Brian Cornell, SVP Commercial Strategy Ace Glenny, COO Michael Fiddelke, and 12 other senior leaders—across Enterprise, Merchandising, Digital, Guest Experience, Retail Brand Experience, Enterprise Insights, Fun 101, Home & Hardlines, and Food & Beverage, Essentials & Beauty—shared valuable insights into the retailer’s forward-looking strategy, business priorities, and evolving expectations for the supplier community.

Throughout, it was clear that Target is mobilizing every function toward speed, dependability, and co-created growth, powered by technology and transparent partnerships. For current and aspiring partners alike, now is the time to align and act. 

Below, CPG by MPG EVP Kristine Glancy has highlighted the most business-critical insights in the areas of Enterprise, Commercial, and Digital Strategy to help MPG clients deliver against Target’s expectations and grow business there in the year ahead.

Purpose as growth compass. Target’s enterprise North Star is explicitly “bringing JOY to EVERYONE, EVERYDAY,” a rallying cry CEO Brian Cornell stresses unifies product creation, guest experience, and culture so the team can “win the long game” even in a turbulent retail climate.

Three structural enablers to accelerate action are already in place. The summit confirmed (1) Core capability restructuring to streamline go-to-market processes, (2) the new Enterprise Acceleration Office, and (3) a sweeping technology upgrade agenda—each designed to accelerate cross-functional decision-making and shorten the idea-to-shelf cycle.

Five priorities anchor the strategy. Leaders re-emphasized the importance of:

• A world-class first-party Digital Experience (already a $20 billion business last year)

• Loyalty flywheel through Target Circle–Target Circle members spend 3X more than nonmembers!

• A Fun 101-led Home & Hardlines transformation

• Doubling down on Reliability & Affordability for value-conscious guests, and

• Ongoing Technology Modernization of systems and processes

Vendor partners as ‘Team’ members.  Target made it clear: It explicitly includes suppliers in its definition of “Team,” and wants deeper co-creation with suppliers. That means proactive collaboration in assortment planning, demand sensing, and seamless end-to-end execution.

Growth thesis: innovate, listen, celebrate.  Innovation at accessible price points remains the priority, with an emphasis on solving pain points and bringing joy to everyday purchases. Ensure that newness truly grows the category. Offer on-trend products at accessible prices, solving emerging guest “pain points” creatively, and transforming routine moments into mini-celebrations—embedding joy into everyday retail.

Acceleration metrics focus on speed and dependability.  Reliability gaps exposed during pilot work with Kimberly-Clark were halved and next-day fulfilment doubled, proving the new measurement system can scale.

Growth lens is category-agnostic. From Food & Beverage Complete Re-Flow for the first time in 10 years to discretionary “Fun 101” floor sets, each division must ladder into enterprise pillars of differentiation, accessibility and digital-led discovery.

Strategic segment shift towards ‘Zillennials’.  Target will pursue multicultural, trend-forward young adults while also targeting busy parents, established couples, and child-free midlifers—using tailored promotions and social-first storytelling.

Key-item obsession.  New analytics show just 3% of SKUs drive 6% of units and are purchased six times more often; merchandising and inventory teams will protect these “never-outs” above all else.

Modernizing guest touchpoints. Digital and physical journeys are being re-imagined—from in-store signage to app recommendations—to engage more strategically at every moment that matters. A store-wide signing reset (50 standard sign types replacing 4,000) plus a fall ’25 “New & Now” toolkit will simplify navigation and amplify newness across 1,850 stores.

Ace Glenny’s remit: Remove friction. Target is actively confronting long-standing supplier pain points. Whether it’s item setup or invoice tracking, expect new tools and simplified processes designed with partners in mind. As the new SVP Commercial Strategy, Glenny acknowledged Target can feel “transactional” and pledged to confront systemic pain points unique to each business.

Merchant capability uplift. Monthly training, heavier travel budgets for for vendor engagement and brand growth discussions, and clearer in-person workflows will raise merchant agility and external listening skills.

‘Manage My Financials’ platform. A single portal will offer vendors real-time visibility into accruals, deductions, and payment status—all in one view. An upgraded dispute resolution tool promises faster issue turnaround.

GenAI POL Chatbot.  Rolling out across the enterprise, Target’s generative AI chatbot promises instant policy answers and item setup guidance, replacing multiday email loops with same-day resolution.

System-level simplification and cost relief.  Effective immediately, Target has scrapped new-store and remodel fees; it is also benchmarking compliance fines against industry peers to ensure fairness.

Data democratization.  Expanded API feeds, richer Vendor IQ dashboards, and a scaled Brand Ambassador program will unlock shopper-level insights previously limited to internal teams, enabling smarter joint business planning.

Coming soon: Item-Hub one-stop shop. A future hub will cover creation, maintenance, and cost changes—replacing multiple legacy tools and reducing attribute duplication.

Partnership ethos: Transparency & speed. Commitments include end-to-end process visibility, faster response times, and enhanced training resources—and escalation contacts were shared live during the summit.

App-centric revenue engine. Three-quarters of digital sales now flow through the Target app, and one-third of app sessions occur inside stores. To deepen engagement,  a store-centric digital assistant will surface real-time deals and trending items as guests shop.

Unified physical-digital hub. Intuitive search plus personalized discovery will let guests find highly-rated items “with a few clicks,” while Roundel’s objective-based media continues to monetize traffic and fund innovation. Investments in Roundel are already up 18%, and leadership aims to double that again within five years while scaling Target+ Marketplace to a $5 billion business.

Reliability is the #1 guest friction. Inventory teams aspire to be “reliable every day, any time of day,” focusing on never-out items, operational efficiency, and seasonal “moments that matter.”

Digital experience optimization mantra: “Make it easy, frictionless, valuable.”  Teams will measure success by time saved for guests and reduction of checkout steps across web, app, and third-party surfaces.

Same-Day Delivery (SDD) as signature service. A core differentiator, SDD is being scaled to new zones and optimized for seasonal execution. The goal: be reliable every day, any time of day—especially during high-impact seasonal events. Building on the 2017 Shipt acquisition and April 2024 Circle 360 launch, Target is implementing growth pillars in 2025+ to outpace industry SDD adoption.

Tech modernization underpins everything. From re-platformed item-setup APIs to AI-driven demand forecasting, Target is investing deeply in scalable, cloud-native systems that shorten lead times and surface signals faster.

Target is focused on simplifying and streamlining every function when it comes to working with Target. They are doubling down on modernizing their tech and tech powered vendor services as well as deeper vendor collaboration with the goal of giving both merchants and vendors more time on identifying ways to grow the business.  They are continuing to double down on working with vendors who bring differentiation, exclusivity, and meaningful co-creation. Target is humbled by the macro-economic factors impacting their current sales, but reiterated they are focused on the long-game and confident in their overall strategy.

The CPG by MPG plays a vital role in helping brands navigate the complexities of the retail landscape at Target and other retailers, driving sales, building strong consumer connections, and optimizing product performance. For deeper insights on the Target Partner Summit and specific breakout sessions tailored to your business, contact Kristine Glancy at Kristine.Glancy@thecpgretail.com.