Target's Non-Merchandise Sales Jump 20% as New Revenue Streams Scale
Target's Q2 fiscal 2026 results show a significant shift in revenue mix, with non-merchandise sales surging 20.1% compared to 5% growth in merchandise sales. The company's advertising platform Roundel, Target+ marketplace, and Circle 360 membership all grew over 40%, with advertising revenues jumping to $279M from $217M. This diversification into higher-margin business initiatives is helping Target outperform competitors and demonstrates successful monetization of its digital footprint and guest engagement.