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Target Lays Out $5 Billion Turnaround Focused on Busy Families

Executives targeted busy families with category revamps, forecasting a return to growth this year.

Overview

  • At an investor meeting in Minneapolis, CEO Michael Fiddelke detailed a merchandising and store design reset backed by $5 billion in capital spending.
  • The strategy narrows the retailer’s scope away from an “everything store,” introducing tests like baby concierges and expanding the Cloud Island baby brand.
  • Target will expand assortments in food, beauty, apparel, and home, including adding Supergoop to beauty aisles and more sports and games for kids.
  • The company plans 30 new stores and 130 full remodels in 2026, will invest in a fresher grocery supply chain, and will devote hundreds of millions to store staffing and training, according to the CFO.
  • After a 2.5% comparable‑sales decline in the latest quarter, management reported February sales growth and guided to roughly 2% growth for the year, with expectations for gains each quarter of 2026.