Walk into any Target on a Saturday morning. You’ll see the "Target red" carts, the Starbucks line snaking toward the door, and people wandering the aisles for things they definitely didn't plan to buy. It doesn't exactly look like a ghost town. Yet, if you spend five minutes on TikTok or scroll through certain corners of Facebook, you'll see people swearing up and down that Target is going out of business. It’s a weirdly persistent rumor.
Honestly, it’s mostly noise.
But where does that noise come from? People don't just make these things up for no reason, usually. There is a massive difference between a company "struggling with margins" and a company "closing its doors forever." Target is currently dealing with the former, but the internet loves to jump straight to the latter because it makes for a better headline.
The Reality of Target Store Closures in 2024 and 2025
Let's look at the actual numbers because they tell a much more boring (and accurate) story. In late 2023, Target did something that fueled the fire: they closed nine stores across four major cities. Seattle, San Francisco, Portland, and New York City all lost locations.
The company wasn't shy about why. They explicitly blamed organized retail theft and safety concerns.
When a giant like Target closes a store in a major metro area, people freak out. They think it's the first domino. But here is the nuance: at the same time they were closing those nine stores, they were opening dozens of others. They actually have a plan to build more than 300 new stores over the next decade. That isn't what a dying company does. A company heading for bankruptcy—think Bed Bath & Beyond or Toys "R" Us—stops paying rent and cancels all construction. Target is doing the opposite. They are leaning into "large-format" stores that can handle more online order fulfillment.
Why the "Going Out of Business" Myth Won't Die
Social media is a echo chamber. You've probably seen those videos of "empty shelves." Sometimes a store is just understaffed. Or maybe the truck was late. Or, more likely, they are transitioning a section for a new seasonal launch. But a video of an empty shelf with a caption like "Target is finished!!" gets a million views.
Then there's the financial side.
👉 See also: Share Market Today Closed: Why the Benchmarks Slipped and What You Should Do Now
In 2023, Target’s stock took a massive hit. They had a rough year. Sales dipped for the first time in years. They dealt with a huge backlash over their Pride collection, which alienated different groups of customers for different reasons. Conservative shoppers boycotted, while LGBTQ+ advocates felt the company folded too easily by moving displays. It was a PR nightmare. When a stock price drops, people who don't understand the market assume the company is going bankrupt.
But "low stock price" is not "out of business."
Comparing Target to Actually Dying Retailers
If we want to see what a retail death spiral looks like, we should look at Big Lots or Express. Those companies have actual debt-to-equity ratios that make bankers sweat. They have shuttered hundreds of stores and filed for Chapter 11.
Target? Their revenue is still hovering around $100 billion.
Their "Drive Up" service is basically a money-printing machine. It grew nearly 10% even when other parts of the business were sagging. People love not having to get out of their cars. As long as people are addicted to the convenience of the Target app, the lights are staying on.
The Real Problems Target is Facing (That Aren't Bankruptcy)
Just because they aren't going bust doesn't mean everything is sunshine and rainbows. Target is in a weird spot. They aren't as cheap as Walmart. They aren't as fast as Amazon. They sit in this middle ground of "affordable chic" that gets hit hard when inflation spikes.
When eggs cost $5, people stop buying $20 throw pillows.
✨ Don't miss: Where Did Dow Close Today: Why the Market is Stalling Near 50,000
- Inventory Bloat: A couple of years ago, they had way too much furniture and electronics when people started spending on travel instead of home goods. They had to slash prices to move it.
- The "Shrink" Issue: "Shrink" is the industry term for theft and damaged goods. Target CEO Brian Cornell has been very vocal about this. It's cutting into their profits by hundreds of millions of dollars.
- Discretionary Spending: This is the big one. Most of what Target sells—home decor, clothes, toys—is stuff you want, not stuff you need. In a tough economy, people stick to the needs at Walmart or Aldi.
What the Experts Say
Retail analysts from firms like JPMorgan and Stifel have generally maintained a "hold" or "buy" rating on Target. They see it as a resilient brand. Neil Saunders, a well-known retail analyst at GlobalData, has pointed out that while Target lost some of its "magic" recently, it’s still a destination. The "Target Run" is a cultural phenomenon that Walmart hasn't quite replicated.
You also have to look at their private labels. Brands like Good & Gather and All in Motion are billion-dollar brands on their own. If Target were a person, they’d be a middle-aged professional who just had a really bad year at work—not someone filing for unemployment.
How to Spot a Real Retail Collapse
If you're worried about your favorite store, don't look at TikTok. Look at these three things:
- Vendor Credit: Are big brands like Sony or LEGO pulling their products because they aren't getting paid? No? Then the store is fine.
- Debt Maturities: Does the company have billions in loans coming due with no cash to pay them? Target has a solid credit rating.
- Store Count: Is the total number of stores shrinking rapidly? Target's total store count is actually increasing year-over-year.
The Future of the Bullseye
Target is currently redesigning its stores. They are making the backrooms larger to act as mini-warehouses. This is their "stores as hubs" strategy. Instead of shipping a t-shirt from a warehouse in another state, they ship it from the store three miles from your house. It’s cheaper and faster.
They are also doubling down on their partnership with Ulta Beauty. Adding "mini-Ultas" inside Targets has been a huge win for them. It brings in foot traffic that might have just stayed home and ordered from Amazon.
Practical Insights for the Savvy Shopper
Since Target isn't going anywhere, you don't need to rush out and spend your gift cards before the doors lock. But you should change how you shop there if you want to save money while they navigate these weird economic times.
Leverage the RedCircle. If you aren't using the Target Circle app, you're basically giving them free money. They’ve moved to a more personalized discount model. This means the app tracks what you buy and gives you "Just for You" deals.
🔗 Read more: Reading a Crude Oil Barrel Price Chart Without Losing Your Mind
Watch the "Deal Worthy" Brand. To fight the "Target is too expensive" narrative, they launched a new low-cost brand called Deal Worthy. It’s meant to compete directly with Dollar General and Walmart's Great Value. It’s mostly basics like laundry detergent and socks.
The Clearance Cycle is Real. Target is aggressive about clearing out inventory. If you see a "yellow sticker" on the endcap, wait. If it says 30% off, it will likely hit 50% or 70% within two weeks, provided they have enough stock.
Don't Ignore the Credit Card. The 5% discount from the RedCard (now just called the Target Circle Card) is one of the best "guaranteed returns" in retail. It even applies to the Starbucks inside.
Basically, the rumors of Target's demise are a mix of misunderstanding corporate strategy and the internet's love for a good disaster story. They are closing underperforming or high-theft stores to protect their bottom line, which is actually a sign of a healthy business making tough choices. They are leaning into digital sales and smaller, more efficient locations.
The Bullseye is going to be around for a long time.
Next Steps for Your Wallet
- Audit your Target Circle App: Check the "Bonus" section. They often hide "Spend $50, get $10" rewards that require manual activation.
- Check Store Status: If you're in a major city like SF or Seattle, use the store locator on the official website to see if your local spot is one of the few being "reformatted" or relocated.
- Compare the "Deal Worthy" line: Next time you need basics, compare the price-per-ounce of the new Deal Worthy brand against the name brands. The savings are usually around 40%.