The retail giant has made big money in recent years, with its online sales and retail channel selling $1.3 billion in sales in 2017.
However, as Amazon and its rivals grow and disrupt the grocery industry, Target is looking to tap into a much broader audience that can support its growing online business.
“Target has been doing well, but they have also been doing a lot of bad things,” said Jeff Buhler, a senior analyst with market intelligence firm Euromonitor.
Target’s online sales are expected to rise to $1 billion in 2018.
Target has made a number of moves to boost its online footprint, such as offering shoppers the ability to shop at multiple locations across the U.S. and partnering with grocery chains.
But it is also planning to sell off more than 30 percent of its US grocery business.
The company is also reportedly looking to cut its US food retail footprint by more than a third, according to Bloomberg.
“If we are going to sell more of our stores, we are doing it in a way that makes sense for us and makes sense to our stakeholders,” Target CEO Gregg Steinhafel told Bloomberg.
Target will also likely consider selling the rest of its grocery business to other companies, Buhlers comments indicate.
Target, however, hasn’t said what it plans to do with its US retail business.
Buhrs comments are also consistent with comments from several retailers that they aren’t planning to cut their stores, or to sell any of their grocery business either.
However there is speculation that the retailer is also looking to sell its food business.
Some of Target’s food-delivery business is still in place, including in the Midwest, where the chain is currently headquartered.
“They are going through a period where they need to make some adjustments,” Buhs comments indicate, though he doesn’t specify which ones.