23 Biggest Target Competitors In 2023 (Your Full Guide)
As one of the largest retailers in the world with over 1,900 stores, Target faces competition from many companies seeking to grab a share of the lucrative retail market. Understanding Target‘s main competitors provides valuable insights for consumers looking for alternative stores and businesses looking to analyze the competitive landscape.
This guide will dive into Target‘s 23 biggest competitors and how they compare across key factors like pricing, product selection, strengths and weaknesses. Let‘s explore the top retailers challenging Target‘s dominance.
Overview of Top Target Competitors
Here is a snapshot of leading Target competitors:
Walmart – The #1 retailer worldwide with over 10,500 stores and 2x Target‘s revenue. Competes across all product categories.
Amazon – Leading ecommerce player with superior selection and convenience. Growing grocery and private labels.
Costco – Top discount warehouse club competing on bulk items and prices. Requires paid membership.
Home Depot – Largest home improvement retailer with expansive selection of home goods.
Kroger – Leading grocery chain with over 2,700 stores and popular loyalty program.
Best Buy – Top electronics retailer competing on appliances, gadgets and services.
Lowe‘s – Second largest home improvement chain after Home Depot. Offers similar products.
Walgreens – Major drugstore chain with over 9,000 stores stocking pharmacy, groceries and more.
Sam‘s Club – Warehouse club model like Costco with 600+ US locations and lower prices.
Aldi – Fast-growing discount grocery chain with ultra-low prices on private label items.
Dollar General – Leading dollar store with over 16,000 locations and discounted prices.
Nordstrom – Upscale fashion department store chain focused on apparel, shoes and accessories.
Macy‘s – Longstanding department store competing in apparel, beauty, home goods and more.
Kohl‘s – Department store with huge apparel selection and popular loyalty program.
TJ Maxx – Top off-price apparel and home retailer under TJX brand. Treasure hunt shopping.
Ross – Another TJX off-price chain with wide assortment of apparel, home goods and more.
Bed Bath & Beyond – Leading home goods chain with expansive selection of household items.
Sears – Struggling department store chain still competing across many product categories.
JCPenney – Mid-tier department store chain competing on apparel and home products.
Office Depot – Top office supply retailer also selling tech, furniture and school supplies.
CVS – Major drugstore chain competing with Target‘s mini-pharmacies and clinics.
Ace Hardware – Leading neighborhood hardware store offering tools, lawn supplies and more.
Let‘s explore the 10 largest Target competitors in greater detail:
1. Walmart
As the world’s largest company by revenue, Walmart is Target’s biggest competitor. Walmart has over 10,500 stores worldwide, dwarfing Target’s 1,900 locations. In 2020, Walmart’s revenue was $559 billion – more than 5 times Target’s $93 billion.
Walmart competes across every product category, from groceries and pharmacy to home goods, apparel, toys, electronics and more. It positions itself as a one-stop shop with “everyday low prices,” leveraging its scale to undercut competitors. Walmart also offers in-store pickup and delivery through its online grocery service.
Where Walmart falls short compared to Target is in its in-store experience. Target stores are known for being more aesthetically pleasing, organized and enjoyable to shop in than Walmart’s big-box locations. Target also attracts a more affluent demographic compared to Walmart’s low-price buyer base.
2. Amazon
Amazon is Target’s largest ecommerce competitor. As the dominant force in online shopping, Amazon offers unmatched selection, convenience, and speed of delivery. The COVID-19 pandemic accelerated the shift to online shopping, with Amazon seeing 40% sales growth in 2020.
Amazon competes across most major product categories like home goods, apparel, electronics, toys, household essentials and more. Where Amazon originally struggled was in groceries, but it has quickly ramped up Amazon Fresh grocery delivery and built out its physical store presence through Whole Foods.
Amazon’s private label brands like AmazonBasics and Rivet pose another threat as they undercut prices on popular items. However, Target has its own popular private labels like Good & Gather food and Cat & Jack kids apparel. Target also offers in-store pickup and same-day delivery through Shipt to better compete.
3. Costco
Costco is a leading warehouse club retailer with 804 locations globally. Shoppers pay a membership fee for access to discounted bulk sizes on groceries, appliances, home goods, clothing, and more. Costco pulled in $163 billion in 2020 revenue, heavily competing with Target on low prices.
Costco offers deep discounts but has a more limited selection than Target since it focuses on bulk quantities and store brand items. Shoppers also must pay $60 to $120 per year for a Costco membership. Costco competes directly with Target on essentials like cleaning supplies, OTC medication, pet food, and kitchen staples sold in bulk.
4. Home Depot
With over 2,000 stores, Home Depot is the top home improvement retailer worldwide. It posted $132 billion in revenue in 2020, capturing nearly 10% of the US retail market share. Home Depot heavily competes with Target on all home goods, decor, furniture, storage, organization, appliances, tools, and lawn/garden.
Home Depot offers a much wider selection of home improvement products compared to Target. Its stores include lumber yards, large flooring departments, design centers, tool rental centers and more specialty offerings. Home Depot also provides professional installation services on big projects.
However, Target benefits from having groceries, apparel and other everyday items alongside its home assortment – creating a one-stop shop experience. Target also tends to offer trendier, affordable home decor vs. Home Depot’s focus on functional improvement projects.
5. Kroger
With over 2,700 grocery stores, Kroger is one of America’s largest food retailers. The grocery giant competes directly with Target on food, essentials, pharmacy services and more. Kroger operates stores under other regional chains like Ralphs, Harris Teeter, and Fred Meyer.
Kroger reported $70 billion in revenue for 2020 and has built a popular loyalty program with 60 million households. While Target offers groceries and medications, Kroger provides a wider fresh food selection and cheaper store brand options. Kroger also has in-store Starbucks, fuel centers and specialty counters that Target lacks.
However, Target competes by having general merchandise alongside its grocery, appealing to guests wanting a one-stop-shop experience. Its Good & Gather private label has quickly become a top selling grocery brand.
6. Best Buy
As a top electronics retailer, Best Buy is Target’s biggest competitor in the consumer tech space. Best Buy has over 1,100 stores selling everything from laptops, smartphones, TVs and gaming consoles to refrigerators, washers, smart home and virtual reality.
In 2020, Best Buy pulled in $47 billion in revenue. It competes not only on product selection but also value-added services. Best Buy sets itself apart through its Geek Squad installation and tech support, as well as expert advice in stores. However, prices tend to be higher than Target unless customers catch big sales.
Target has grown its electronics department in recent years but has a smaller selection focused on the most popular tech. It competes with competitive prices, in-store pickup, and matching online prices. Target also recently started rolling out “tech consultants” in stores to assist customers.
7. Lowe‘s
With over 2,200 home improvement stores globally, Lowe’s is Home Depot’s biggest competitor and the 2nd largest home retailer behind only Home Depot. Lowe’s competes directly with Target on all home goods, improvement items, tools, lighting, appliances, and more.
Lowe’s reported $72 billion in revenue for 2020. Similar to Home Depot, it offers a much wider selection of home-related products versus Target’s home departments. Lowe’s competes on customer service through Project Guides to advise DIYers. However, prices tend to be higher than Target unless shoppers find sales.
Target holds its own through trendy, affordable home decor to complement the functional offerings at Lowe’s. Its threshold private label also rivals Lowe’s house brand. Target’s one-stop shop convenience also gives it an edge over Lowe’s specialized focus.
8. Walgreens
Walgreens operates over 9,000 pharmacy and retail stores, making it a top Target competitor in health, beauty, snacking, and select grocery. With $139 billion in 2020 revenue, Walgreens competes heavily with Target on drugstore staples.
Walgreens provides much more extensive pharmacy and clinical services compared to Target’s smaller in-store pharmacies. However, Target competes by having fuller grocery selections alongside pharmacy, clinic, beauty, and personal care. Target also offers competitive prices through its Up&Up store brand.
9. Sam’s Club
Owned by Walmart, Sam’s Club is a membership warehouse club with nearly 600 US locations. Requiring an annual fee like Costco, it competes directly with Target on bulk essentials, some groceries, and select general merchandise. Sam‘s Club pulled in $58 billion in US revenue last year.
Compared to Costco, Sam’s Club has slightly lower membership fees starting at $45 per year and smaller warehouse sizes averaging 134,000 sq ft. It offers bulk home goods, office supplies, electronics, tires, furniture, clothes, and pantry staples. However, food selection is more limited than at Target.
10. Aldi
Aldi has transformed into a major discount grocery threat with over 2,000 US stores. Focusing on store brands, Aldi has extremely low prices that pressure Target and other grocers. Aldi is growing quickly, targeting having 2,500 US stores by 2022.
Aldi has a lean business model -offering a smaller selection of 1,300 private label grocery items in no-frills stores. Shoppers bring their own bags and pay a deposit for a cart. While Target has competitive groceries, Aldi undercuts on prices through its barebones approach.
Other Notable Target Competitors
Beyond the top 10, here is an overview of other significant Target competitors:
Dollar General – With over 16,000 stores in the US, Dollar General goes head-to-head with Target through ultra-low prices on home essentials and consumables. However, it has a more limited product selection.
Nordstrom – As a high-end fashion department store, Nordstrom competes with Target on apparel, shoes, jewelry, beauty and accessories but caters to more affluent shoppers.
Kohl’s – Another department store competing across apparel, footwear, home goods, beauty and more. Offers competitive loyalty program.
TJ Maxx – Owned by TJX, TJ Maxx is an off-price retailer competing with Target on apparel, home goods, toys, accessories and more.
Ross – Sister chain to TJ Maxx, Ross also offers steep discounts on clothing, shoes, accessories, and housewares.
Bed Bath & Beyond – Leading home goods chain competing on kitchen, storage, bath, bedding, decor, and cleaning products.
Ace Hardware – Neighborhood hardware store competing with Target on tools, lawn & garden, and home repair supplies.
Office Depot – Top office supply chain also competing on school supplies, furniture, tech, and printing services.
Key Competitive Factors Facing Target
As Target looks to retain its spot as a top-ten US retailer, here are some of the biggest competitive factors it faces:
Ecommerce – Online sales growth is disrupting brick-and-mortar. Target has rapidly expanded fulfillment options but still lags Amazon.
Grocery Wars – Food retailers like Kroger and Walmart and discounters like Aldi make groceries highly competitive.
Home Improvement – Target has a much smaller home assortment than category killers like Home Depot and Lowe’s.
Private Label – Store brands from Amazon to Kroger challenge Target’s popular owned brands.
Off-Price Stores – Fast-growing chains like TJ Maxx and Ross provide steep discounts in apparel and home decor.
Small Format – Dollar General and Walgreens’ convenience store models threaten Target Express.
To stay on top, Target continues providing trend-right, affordable products using data analytics to localize stores. It is also optimizing pricing strategies and integrating digital with physical through options like in-store pick-up. Leaner inventory and partnerships like with Ulta for “shop-in-shops” also keep Target competitive.
Target’s popular private labels, loyalty program, and focus on the in-store shopping experience even in the digital age should also allow it to thrive despite rivals.
Final Takeaways on Target and the Retail Industry
Target faces fierce competition across all product categories from groceries and pharmacy to apparel, home, electronics, toys, and consumables.
Walmart and Amazon are Target’s #1 and #2 competitors based on market share and scale. But retailers like Costco, Home Depot and Kroger also take business across key categories.
Ecommerce growth, the rise of discounters like Aldi and dollar stores, plus category killers like Home Depot have redefined the retail competitive landscape.
However, Target continues leveraging its multi-category appeal, popular private labels, competitive prices and in-store experience to retain customers.
Understanding Target’s position among retail competitors provides great insight for both consumers considering alternatives and businesses analyzing the market landscape. While competition is fierce, Target remains well-equipped to hold its own as a retail leader now and into the future.
