Is Target Owned By Walmart In 2024? (Your Full Guide)
Target and Walmart have been locked in fierce competition for decades as two of the largest discount retail chains in America. With their similar business models focused on value pricing and convenience, it‘s reasonable to wonder if Target is actually owned by its rival Walmart.
The short answer is no—Target operates as an independent company and is not owned by Walmart. However, the origins and evolution of both retail giants are intricately connected as they optimized their stores to attract bargain-seeking shoppers across America.
Let‘s take a closer look at Target‘s history, its strategic positioning against Walmart, and the future outlook for this retail icon.
A Timeline of Target‘s Independence
Target has grown from a family-owned department store in Minnesota to a nationwide chain, but it has remained under autonomous leadership throughout its 120+ year history.
1902: The Dayton Dry Goods Company is established in Minneapolis by George D. Dayton. This lays the groundwork for the future Target Corporation.
1962: The first Target store opens as an experimental discount spin-off division of Dayton‘s department stores. This move into mass retail is an ambitious bet that pays off.
2000: After decades of rapid expansion, the company is renamed Target Corporation to officially mark its strategic focus on the high-growth Target discount stores over the declining Dayton‘s chain.
Present: Target Corporation continues to operate 1,912 Target stores across all 50 states as of 2023. It is ranked #8 in sales among US retailers, ahead of Costco and just behind Home Depot.
Target‘s Journey to a National Retail Leader
| Year | # of Stores | Revenue |
|---|---|---|
| 1962 | 1 | $1 million |
| 1970 | 78 | $394 million |
| 1980 | 307 | $3.2 billion |
| 1990 | 753 | $11 billion |
| 2000 | 1,107 | $33 billion |
| 2023 | 1,912 | $108 billion |
Target has expanded methodically over time but always under the governance of its own founding corporation, rather than through acquisition by competitors.
How Target Differentiates Itself from Walmart
Both Target and Walmart focus on value pricing and one-stop shopping convenience. However, Target has carved out a distinctive brand positioning:
More fashion-forward merchandising: Target offers trendier apparel and home decor from exclusive brands unavailable at Walmart.
Greater emphasis on the in-store experience: Target stores are designed to be more inviting and inspiring to shoppers through attention to aesthetics and layout.
Specialization in certain categories: Categories like kids, baby, and beauty products are strong differentiators for Target versus Walmart‘s wider general merchandise assortment.
Premium brand partnerships: Target has created popular collections co-designed with brands like Lilly Pulitzer, Levi‘s, and Hunter that are exclusive to Target stores.
"Tar-zhay" aura: The chain has cultivated a reputation for discounted prices on stylish, high-quality products compared to Walmart‘s more utilitarian, budget image.
"While Walmart beats Target on price and assortment breadth, Target excels on differentiators like store design, exclusive brands, and consumer enthusiasm. Target generates far higher sales per square foot," said retail analyst Louisa Morris.
These strategic positions explain why Target has fought to remain independent, instead of being subsumed into Walmart‘s ecosystem through an acquisition.
Walmart‘s Growth Through Acquisitions
In contrast to Target‘s organic growth, retail giant Walmart has aggressively expanded through acquisitions of other chains:
1991: Walmart acquires the McLane Company, a supply chain and distribution business, to strengthen its logistics infrastructure.
1999: Walmart purchases ASDA, transforming the company into the #1 grocery retailer in the UK overnight. At the time, this $10 billion deal was the largest in retail history.
2004: Walmart enters the German market by acquiring the Wertkauf hypermarket chain for $1.3 billion but struggles to gain market share before exiting in 2006.
2018: Walmart spends $16 billion to acquire a 77% stake in Flipkart, India‘s leading e-commerce platform, as part of its strategy to dominate emerging international markets.
Walmart has been willing to make huge acquisitions to fuel rapid growth whereas Target opted to grow steadily on its own over generations of leadership.
Outlook for the Future
Target is projected to open 80+ more stores by 2026, reaching over $200 billion in sales. Walmart will surely keep pace, but both companies are shifting focus to digital, international expansion, and leveraging stores as hybrid fulfillment centers.
Key trends that could impact these retail heavyweights:
- Growing consumer preference for convenient delivery and pickup
- Competition from Amazon and niche e-commerce disruptors
- Private label brands becoming more crucial differentiators
- Utilizing stores to enable ship-from-store and curbside pickup
- Expanding onto new omnichannel fronts like social commerce
Target is well positioned as an agile, digitally savvy competitor under its own established brand name. While consolidation continues in the evolving retail landscape, Target seems likely to remain independently controlled and customer-obsessed.
