Over the past few days, a rumor has been circulating heavily on social media: the supposed arrival of Target in Mexico. Some versions even claim that the first store of this U.S. chain would open in Monterrey, Nuevo León. However, this is false.

While Target has indeed arrived in Mexico, it has done so in a very different way than many anticipated.

Target Mexico: The Source of the Rumor

The rumors began with a series of social media posts that started circulating recently. These posts showed images of Target offices in Mexico City.

From there, the rumor grew that the chain was about to open its first physical store in the country. Speculation quickly spread, with users excited about the possibility of having access to the wide range of products this brand offers, known for combining fashion, home goods, and affordable prices.

Target Denies Plans to Open a Store in Mexico

A spokesperson for the brand denied these claims in an official statement to Bloomberg Línea. “The information is false. We have no plans to open stores in Mexico,” the brand’s representative said, putting an end to the rumors (and mexicans consumer hopes as well).

The Truth Behind Target’s Entry into Mexico

Yes, Target has arrived in Mexico, but not in the way many expected. Instead of opening physical stores, the company has established a small office in Mexico City as part of its global operations network.

These offices are not designed to serve end consumers or sell retail products but are meant to handle logistical and strategic aspects of the company, supporting its main operation in the United States.

This strategy is similar to what Target has implemented in other countries. The company has offices in various cities around the world, in countries like India, China, Vietnam, Thailand, Guatemala, and many others. These offices act as nerve centers where local teams collaborate closely with the headquarters staff in Minneapolis, USA.

Mexico is no different. The opening of the office in Mexico City is part of Target’s international operations expansion, but it is unrelated to opening physical stores.

What Does Target Do in Its International Offices?

It’s interesting to note that although Target has physical stores exclusively in the United States, its international presence is significant at an operational level. The offices it has opened around the world serve strategic functions for the company, particularly concerning the supply chain and the management of private label brands.

In cities like Bengaluru, India, for example, Target has established an operations center where over 4,000 employees collaborate with the headquarters in Minneapolis to improve the customer experience. These employees work in various areas such as technology, data analysis, product design, and more.

Additionally, Target has a global sourcing team that operates from 21 offices in countries like Bangladesh, Vietnam, Guatemala, and Mexico, among others.

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Target Offices in Mexico, But Why No Stores?

Many consumers wonder why Target has decided to open offices in Mexico without plans to open physical stores, especially considering the growing retail market in the country. The answer to this question lies in the company’s business model and global strategy.

Target has chosen to focus its efforts on maintaining a strong presence in the United States, where it already has more than 1,900 stores. Its focus has been on creating a shopping experience centered on the U.S. consumer, improving logistics, and enhancing the stores it already owns.

The brand is not present in any other country, not even Canada.

Target Statistics and Data

• Global sales of discount stores in 2023: Target ranked third worldwide, with sales of $109.12 billion, behind Walmart ($611.29 billion) and Costco ($234.39 billion).
• Brand value: In 2023, Target was one of the most valuable retail brands in the world, with an estimated value of $27.599 billion.
• Sales of general merchandise stores in the U.S.: In 2023, sales from U.S. general merchandise stores totaled $874 billion, with $98 billion coming from discount stores.
• Number of Target stores in the U.S.: In 2023, Target had a total of 1,956 stores in the United States.
• Sales per store in the U.S.: In 2023, Target generated approximately $54.11 million in sales per store, far below Costco, which reached $298.79 million per store.
• Annual revenue: In 2023, Target’s total U.S. revenue was $107.41 billion.
• Gross margin: In 2023, Target’s gross margin was 26.5%, a slight increase compared to the previous year.
• Comparable sales growth: Target’s comparable sales decreased by 3.7% in 2023, after experiencing 2.2% growth in 2022.
• Sales segments: In 2023, beauty products and essential home goods accounted for 29.57% of Target’s sales, while food and beverages ranked second at 22.59%.
• Consumer preference: Target ranked as one of the most popular stores in the U.S., with a customer satisfaction score of 81 out of 100.

Source: Statista.