How to become a Target supplier

Becoming a supplier for Target is one of the greatest goals a CPG brand can achieve. One of the largest retailers in the US with a vast and remarkably loyal customer base, Target is known for their high standards in product quality and on-trend innovation. Being selected as a Target supplier can validate a CPG brand's vision and products, and drive long-term revenue growth and brand loyalty for a business.

In this guide, we will provide a comprehensive overview of Target’s unique supplier program, and offer valuable insights on how to use data to win business with the retail giant. 

Types of Target suppliers

Target carries a wide range of products, from electronics and clothing to groceries and household essentials. To stock their shelves, and provide a breadth of high quality online options, Target works with thousands of vetted suppliers, and regularly adds new brands to their assortment. Here, we will take a look at Target’s various sales channels and how they can fit into a brand’s retail strategy:

Regional distribution: Target places a great deal of importance on regionality and fosters relationships with local suppliers to cultivate a sense of community in every part of the US. Many well-known brands today got their start as a regional Target supplier.

By starting small and pursuing regional distribution, suppliers can develop a loyal customer base and gain a foothold on operations before scaling their distribution nationally. However, to initially secure regional distribution with Target, you must be able to prove market demand and sales velocity in the specific regions with data. You will also need to uphold the retailer’s top product quality standards and expectations for order fulfillment.

National distribution – National distribution is a prized opportunity for prospective suppliers who wish to sell their products in Target stores across the country and online at Target.com. This option is best suited for experienced CPG brands that have demonstrated a strong demand for their products on a national level through both in-store and online sales.

To qualify for national distribution, Target looks for profitable products paired with a brand experience that resonates with their core demographics. With limited and highly coveted shelf space, Target's merchandising team sets high expectations for in-store vendors to ensure exceptional customer experiences. This often requires a significant investment in supply chain management to meet Target's distribution requirements and maintain a consistent supply of high-quality products.

Brands can also sell nationwide online through Target.com. Since E-commerce websites are not limited by finite shelf space, Target can maintain a much larger selection of products, increasing a brand’s chance of making it onto digital shelves. Still, to sell on the website, you will need to apply and be vetted as a Target Plus partner. 

Private label – Another avenue to do business with Target is through private label. Private label refers to a partnership where suppliers manufacture products sold under Target’s host of brand names (ex. Good & Gather, Market Pantry). Target sells a robust portfolio of store brand goods, and they often source these from their supplier partners. It can be a good way to begin business with the retailer, or ramp up existing sales.

There are a few things to keep in mind if you’re interested in selling private label products to Target. First, you need to make sure that your products meet Target’s high standards for quality, price, and customer satisfaction. Second, you’ll need to be able to meet Target’s volume requirements. And finally, you’ll need to be able to invest resources and work with Target to develop and launch the products successfully.

By starting small and pursuing regional distribution, suppliers can develop a loyal customer base and gain a foothold on operations before scaling their distribution nationally. However, to initially secure regional distribution with Target, you must be able to prove market demand and sales velocity in the specific regions with data.

Criteria and requirements

Target is one of the largest retail chains in the United States, boasting a massive customer base of over 200 million individuals. To maintain the quality and consistency of their products across all stores, Target has implemented strict criteria and prerequisites for potential suppliers. Aspiring CPG companies aiming to become a Target supplier must ensure that they can satisfy the essential requirements:

Proven success with the ‘Target’ audience – To become a Target supplier, it is important to demonstrate success in existing sales channels, especially with a customer base that aligns with their core demographics. For example, Target is more interested in your historical sales from emerging brand-centric retailers like Whole Foods, or distributors UNFI and KeHE, because these businesses similarly value innovation. 

Target may also be interested in how e-commerce sales have fared, and ask for social media accounts as part of their application process. Your brand’s online presence can help the buyers better understand your customer base, and see if it aligns with theirs. 

Safety and sustainability – Target has one of the most robust product safety and quality assurance protocols around. As part of the application process, the organization vets every stage of a prospective vendor’s manufacturing process to ensure absolute safety of product (especially considering the retailer’s main demographic is moms) and to ensure responsible production processes.

Private label manufacturers that create products for Target’s store brands can expect to have their facilities toured yearly.

In addition, the retailer is committed to achieving net zero greenhouse gas emissions in their supply chain by 2040, and expects vendor applicants to align with their Target Forward program. CPGs that implement sustainable manufacturing practices can have a better shot at moving forward in the application process.

Strong inventory and supply chain management – prospective Target suppliers must have efficient inventory and supply chain management systems in place to ensure timely delivery of products to distribution centers across the country. They should demonstrate full visibility and control of their inventory and distribution, which can be accomplished using integrated data platforms such as Crisp.

Legal compliance – Target CPG suppliers must comply with all applicable laws and regulations, including those related to product safety and labeling. You must also be able to transmit electronic data interchange (EDI) documents to process orders, invoices, and other transactions.

Diversity and inclusion – Target's commitment to diversity and inclusion extends to their supplier application process. They strive to create a more equitable experience for both their business and customers by implementing diversity and inclusion practices. The company has established a Supplier Diversity Team to ensure that over 51% of their vendor roster is owned, controlled, and operated by individuals from diverse backgrounds, including women, Black, Indigenous and People of Color (BIPOC), LGBTQ+ individuals, veterans, and persons with disabilities.

Differentiation is key

To become a supplier for Target, brands must differentiate themselves by highlighting their unique value proposition and how it can benefit Target's business. Target's shelf space is considered valuable real estate, and their buyers and category teams are always looking for ways to improve profits.

To stand out from the competition and earn a place on Target's shelves or website, brands must demonstrate why their products are superior, more profitable, and sustainable for the business compared to others.

Thankfully, Target is receptive to emerging trends and innovation, making it a great opportunity for smaller CPGs. Target also prioritizes ethical business practices and community building, making it more likely to include mission-driven companies in their product assortments.

However, your brand's background and practices are only part of the sales pitch. To make a compelling case to Target's account managers, you’ll need to to show market relevance and the ability to fulfill large-scale orders consistently using sales velocity and distribution data.

Demonstrating a strong market presence and high product demand, paired with the ability to use retailer data to lead a strong and consistent supplier relationship, is key to differentiating yourself to the retailer’s decision makers. 

Target is receptive to emerging trends and innovation, making it a great opportunity for smaller CPGs. Target also prioritizes ethical business practices and community building, making it more likely to include mission-driven companies in their product assortments.

Steps to becoming a Target supplier

Becoming a Target supplier is a great opportunity for brands to expand their reach, but the process can be complex and time-consuming. After reviewing the general requirements to become a Target vendor, you will need to follow a series of steps, including completing a comprehensive application process. Here are some key steps to complete the process successfully:

Make a connection with a Target buyer – Before you start the application process, you’ll want to make an initial connection with a Target buyer. They will help you understand the company's needs, and can ultimately give you a leg up in the application process. You can make a connection with a Target buyer by attending industry events, networking with other suppliers, or contacting Target directly.

Another piece of advice is to work with a well-connected broker who specializes in Target’s application process, and has key relationships within the organization.

Be prepared – Next, you’ll need to ensure that you have the right documents and information to begin the application process. This includes having the necessary insurance and certifications, as well as ensuring that products meet Target’s quality and safety standards. As part of the application process, brands need to provide specific details about their products, including ingredients, sizes, shipping configurations, legal details about the business and more.

Recall that the organization even asks for social media information, so it helps to build a meaningful presence before reaching out. 

Apply and follow up – After gathering the necessary information, designate a person or team to complete the online application. The Supplier Intake Application is located a click away on their website here. After applying, have a broker or sales team follow up to gain more information about next steps.

Engage in negotiations and sign a contract – After submitting an application, Target’s buying team will review the information and determine your product is a good fit. If they are interested in onboarding your brand, they will reach out to begin negotiations. This may include discussions around pricing, promotions, supply chain logistics, and more. Having the right data in negotiations will be key to helping the buyer understand how the products fit into their assortment, and can sweeten the deal.

Upon coming to an agreement, you’ll sign a contract and plan for the first shipments!

Be aware that the process to become a Target vendor can take months or even years, from preparation to signing a deal. In the time it takes to reach negotiations with a decision-maker, however, your company can aggregate even more compelling data to build a strong case and close the deal. Stay patient and understand that more time equates to more preparation for success with one of the most prominent retailers in the country.

Target accelerator programs

Target understands that some of the most promising supplier partners may lack the resources or expertise to scale their business to Target’s full scale. For that reason, the retailer offers “full-spectrum support for curious, innovative and driven founders” through two distinct accelerator programs.

Forward Founders – Target’s Forward Founders is an accelerator program for early-stage CPG companies looking to better navigate retail and scale their efforts. It’s open to CPGs that are less than five years old, with less than $10 million dollars in revenue.

The program includes mentorship from executives, education about Target's supply chain, and even marketing support. The outcome of the 10-week program includes a coaching session with your own Target buyer and a retail action plan – a personalized roadmap to success with the retailer. 

Takeoff Program – Target’s Takeoff accelerator program is reserved for semi-matured brands that have demonstrated success in retail on a smaller scale. It entails a 6-week curriculum with Target experts and executives to learn the ins and outs of doing business with the retailer, understanding their vast supply chain, devising marketing strategies, and more. This is an ideal program for promising CPGs that want to master their sales pitch and understand the art of being a supplier partner to Target before entering the ecosystem. Each approved participant is rewarded with a $5,000 stipend. 

More tips for success

Target specific regions – By analyzing geographic sales data, you can identify the strongest regions for success with Target and use historical data to prove market demand in initial negotiations.

Targeting select locations will help you get a foothold in the beginning of your supplier relationship with the retailer. Then, demonstrated success in these initial locations can open the door to greater distribution opportunities.

Drive your sales story – Crisp’s data platform provides tools to to easily track sales and prove the success of products in existing retail accounts. With year-over-year (YoY) sales and velocity dashboards, you can clearly demonstrate the growth and profitability of their products to large retailers like Target. 

Use Crisp’s Target connector to become a trusted supplier partner – Target suppliers use Crisp to aggregate granular sales data across thousands of store locations. The Target connector seamlessly feeds sales and inventory data into Crisp dashboards – or through to BI tools (Power BI, Excel), cloud platforms (AWS, Google Cloud), and data warehouses (Snowflake, Databricks). 

This integrated technology creates a single source of truth for all of your Target business analytics, helping your company stay ahead of out-of-stocks, track the performance of promotional campaigns, and consistently fulfill orders and drive sales. 

Crisp’s data platform provides tools to to easily track sales and prove the success of products in existing retail accounts. With year-over-year (YoY) sales and velocity dashboards, you can clearly demonstrate the growth and profitability of their products to large retailers like Target. 

Conclusion

Becoming a supplier for Target is a significant move for CPG brands looking to establish themselves as household names. However, the process does involve several requirements and intricate steps that require careful consideration. Despite this, many CPGs are ambitious enough to achieve the goal of becoming a Target vendor.

By utilizing data, CPGs are better able to create a persuasive sales pitch that can help them secure opportunities with the prominent retail giant and become a valued supplier partner.