As Target Holiday Sales Stumble, Some Say Retailer Needs to 'Win Back the Moms'
Kicking off 2025, Target’s performance has been more lackluster than the Red Bullseye retailer anticipated, with sluggish holiday sales that paled in comparison to rivals, like Walmart and Amazon — and with huge investments in holiday ad spending not necessarily paying off in profits or greater market share.
That’s according to the latest Facteus data, which reveals some eye-opening insights into Target's holiday strategy, along with some potential lessons for retailers looking to ‘win’ with increasingly price-conscious consumers this year.
To explore more consumer insights and retail intelligence, check out our reports on Cyber Monday data in 2024, Black Friday spending in 2024, and Millennial spending declines over Amazon Prime Day.
Black Friday Spending Trends for Target vs Other Big Box Retailers
Initiating the end-of-year shopping season, the week of Black Friday is generally a crucial launch for holiday sales, with retailers across the board hoping to see major upticks in revenue during this highly competitive period.
Target’s early stagnation among big box retailers is somewhat surprising, given the fact that this brand invested far more in ad spending, particularly trying to get in front of younger generations on TikTok.
However, Target’s slowdown was not a complete shock to some industry experts, with reports in early 2024 suggesting that Target has lost crucial ground to Walmart with Gen Z shoppers — and that Walmart has been outperforming Target fairly consistently throughout 2024.
Target Spending & the Taylor Swift Effect
Focused on gaining a stronghold on Swiftie spending over the 2024 holiday season, Target had an exclusive partnership with Taylor Swift to sell her “Eras Tour Book.”
5 Post-Black Friday Challenges for Target
Following Black Friday and Cyber Monday, Target’s end-of-year performance did not improve all that much, with:
Only slight increases in December spending: Facteus data shows that, from Black Friday through mid-December, YoY Target spending was up a modest ~2%.
Declining in-store traffic: After Cyber Monday sales ended, foot traffic in Target stores dropped off nearly ~7%.
Target’s inability to sustain post-Black Friday sales may be related to several factors, including (and not necessarily limited to):
Looking Ahead: What’s Next for Target?
With the 2024 holiday season in the rearview mirror, the latest Facteus data uncovers some important insights regarding consumer preferences, adaptability, pricing, and what it may take for Target (and others) to regain crucial momentum in 2025.
While data-driven strategies, more competitive promotions, and digital innovation can be key in these turnarounds, so can a vigilant eye on spending and credit card data. That can help retailers and others keep their fingers on the pulse of the latest shifts in consumer behaviors, spending, and the strategies essential to staying ahead of the competition in 2025 and after.
About Facteus
Setting the bar higher for alternative data providers, Facteus is a national leader in transaction data, delivering unparalleled retail intelligence. With Black Friday, Cyber Monday, and the holiday shopping season serving as pivotal retail events, Facteus data maintains an unmatched 1-day lag in data delivery, empowering leaders and key decision-makers with real-time consumer insights and an unequaled ability to uncover all-new trends.
From tracking spending patterns to identifying key shifts in consumer behaviors, Facteus delivers reliable, expansive datasets to fuel smarter decisions and winning strategies. That can open the door to revenue-boosting competitor intelligence, powerful consumer insights, and growth-focused strategies.