It's an interesting snapshot of things in the US:
Target has not made an official announcement on the matter, and continues to sell a wide variety of movies and music on their website. However, there have been a number of reports on social media, some including photos of empty shelving units.
A call to one New York store indicated that they still had a section -- mostly Blu-rays and 4K discs, but some standard DVDs -- and had no knowledge of plans to change that.
Best Buy recently removed the home video section from their stores, with the only physical media still in most locations being records and video games. Walmart, Target's closest competitor, has also reduced the footprint of physical media in stores over the last few years, but in most cases they maintain a section that's two to three times a large as Target's, and still have a lot of bargain discs, both on seasonal endcaps and in their notorious bargain bins.
Also on this:
Earlier this year, an informal study indicated that there were more movies and TV shows available on disc in 2023 than ever before...but that many of those releases were not coming from big studios. Indie movies, custom projects like school sports and local media, and even bootlegs being distributed online have stepped up to fill the gap in the market.
I'd argue that !boutiquebluray@lemmy.world releasers have done a lot of the heavy-lifting here. They're no releasing so many films it is hard to keep up