Target will leave IndyCar at the end of this season after 27 years with Chip Ganassi Racing that included 11 championships and four Indianapolis 500 victories.
The exit comes as Target is examining all of its marketing platforms under new chairman Brian Cornell.
Target is also the primary sponsor of Kyle Larson in NASCAR's top Sprint Cup Series and will return to his car in 2017.
Target's relationship with Ganassi is one of the longest in any racing series, and the retail giant was a key player in helping Ganassi build his organization.
Target not only sponsored Ganassi's first car as a team owner, but eventually became a partner as the Ganassi team grew to one of the top two players in open wheel racing.