Target is trying to reverse the slump it has been in.
Instead of trying to be everything to every shopper, it will focus on a key demographic — busy families.
The company said it has had struggles since consumers are not spending as much on discretionary goods; instead, they’re focusing on finding good prices on necessities.
The company has had more than three years of flat or declining sales, the CEO said, according to Business Insider. It had a 1.7% decline for the fiscal year ending on Jan. 31, but the company hopes to see sales growth each quarter this year.
There has been more competition from Walmart and Amazon, but CNN also noted that many customers were upset by Target’s scaled-back Pride displays and the rolling back of DEI programs.
To bring customers back, Target will spend about $2 billion to revamp stores, The New York Times reported.
It will also spend money on more workers and increase the number of hours employees can work.
Target will also invest in technology and other areas of its business.
In all, it expects to increase capital spending by 25% to $5 billion this year, CNN reported.
“Target is not an ‘everything store,’” Fiddelke said. “That’s not what guests want from us.”
The company will expand the Cloud Island clothing brand for babies and will test “baby concierges” to help customers find what they need, Business Insider reported.
But targeting families with babies is only the start.
“This is about earning trust early and strengthening relationships that extend well beyond the baby aisle and beyond the baby life stage,” Target chief merchandising officer Cara Sylvester said
The store will also expand the footprint of groceries, Business Insider reported.
“If I were to step back and drew a heat map of the entire store, highlighting where we’re making changes this year, you’d see more change to what we sell and how we sell it than you’ve seen in a decade,” CEO Michael Fiddelke said this week.
CNN said Target was trying to get back its “Tarzhay” reputation, thanks to fashion and furnishing trends, and a store where customers find what’s new.
As part of the change, Fiddelke, who took over as CEO last month, wants to have a better product mix in areas like home decor and apparel. One initiative the company is following is called “Fun 101,” which focuses on trends in sports, gadgets, games and pop culture.
Another will be organization and making sure people can get what they want all the time.
“Our in-store experience has been inconsistent,” Sylvester said. “Too often, we’ve been cluttered, out of stock, or even transactional.”
There may be some hiccups along the way.
“We’re not going to get every single change right this year, but you’re going to see change,” Fiddelke said, according to the Times.
Target plans to open 30 stores and remodel 130 existing locations this year, Business Insider reported.
©2026 Cox Media Group
