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Target is one of the biggest retailer1s in the U.S., offering affordable and stylish clothing. But where does it source its apparel?
Target does not buy its clothes from a wholesaler. Instead, it works directly with manufacturers and private-label brands2 to design and produce exclusive clothing lines.
Let’s explore how Target operates, where it gets its products, and whether it functions as a wholesaler or retailer.
Where does Target make most of its money?
Target sells everything from clothing to groceries, but what drives its biggest profits?
Target makes most of its money from general merchandise, including clothing, home goods, and groceries. Apparel and home décor have some of the highest profit margins.
Minimalist Store Display
Target’s biggest revenue categories
| Product Category | Percentage of Revenue |
|---|---|
| Apparel & Accessories | ~20% |
| Home & Furniture | ~19% |
| Grocery & Essentials | ~26% |
| Electronics & Entertainment | ~14% |
| Beauty & Household | ~21% |
How does Target increase profits?
- Private-label brands – Target designs its own clothing lines (e.g., Goodfellow & Co, A New Day) to cut middlemen costs.
- Exclusive brand partnerships – Collaborations with designers and celebrities attract customers.
- High-margin products – Clothing, décor, and beauty items generate higher profits than food and electronics.
Is Target a wholesaler or retailer?
Target sells in bulk to millions of customers, but does that make it a wholesaler?
Target is a retailer, not a wholesaler. It sells directly to consumers rather than supplying goods in bulk to other businesses.
What makes Target a retailer?
- Sells directly to consumers – Target does not distribute products in bulk to other businesses.
- Private-label brands – Target designs and sells its own exclusive products.
- Physical and online stores – Customers buy at Target locations or via its website, not through wholesale distribution.
Can businesses buy in bulk from Target?
While Target does not function as a traditional wholesaler, it does have Target for Business, which allows companies to purchase supplies in bulk for commercial use.
What’s the difference between a retailer and a wholesaler?
Retailers and wholesalers both sell products, but who they sell to makes the biggest difference.
A retailer sells directly to consumers, while a wholesaler sells in bulk to businesses or resellers.
Retailer vs. Wholesaler
| Feature | Retailer (Target) | Wholesaler |
|---|---|---|
| Sells to | Consumers | Businesses & resellers |
| Pricing | Higher, individual pricing | Lower, bulk pricing |
| Examples | Target, Walmart, Macy’s | Alibaba, FashionGo, Wholesale Fashion Square |
Can a company be both?
Some businesses operate as both a retailer and a wholesaler. For example, Costco sells bulk products to consumers, but also offers wholesale deals to businesses.
Where are most Target products made?
Target has thousands of products, but where does it manufacture them?
Most of Target’s products are made in China, India, Bangladesh, and Vietnam. However, some items, especially groceries and household goods, are made in the USA.
Top manufacturing locations for Target products
| Product Category | Main Manufacturing Countries |
|---|---|
| Clothing & Accessories | China, India, Bangladesh, Vietnam |
| Electronics | China, Taiwan, South Korea |
| Home Goods & Furniture | China, Vietnam, USA |
| Groceries | USA, Mexico, Canada |
Why does Target manufacture overseas?
- Lower production costs – Countries like China and Bangladesh offer cheaper labor.
- Mass production capabilities – Factories in Asia can produce large quantities quickly.
- Competitive pricing – Overseas manufacturing helps Target keep prices low.
Conclusion
Target is a retailer, not a wholesaler, and it sources its clothing directly from manufacturers rather than third-party wholesalers. The company makes most of its money from private-label brands and high-margin categories like apparel and home décor. Most of Target’s products are manufactured overseas, but certain goods, like groceries, are produced in the USA.
