Target has outlined a multi-year growth strategy that includes $2 billion in investments for 2026, with plans to refresh store experiences across the chain, increase store payroll and training and strengthen key parts of its assortment. The retailer said the expected actions will focus on elevating the guest experience by updating store environments and sharpening what it sells and how it sells it.
"This new chapter of growth at Target is defined by clear choices and rooted in a deeper understanding of our unique lane in retail, the guests we serve, and the areas where we're distinctly positioned to win," CEO Michael Fiddelke said.
"Target's new chapter is all about fueling growth, and we'll do so by playing our own game and making big changes to delight our guests," Fiddelke added during the company's FQ4 2026 earnings call on Tuesday, March 3.
Target's shift comes after a long period of expansion, followed by recent years of volatile financial reports. According to public financial records compiled by S&P Global Market Intelligence, the retailer's revenue grew in almost every year from 1992 until 2023, then fell in fiscal years 2024, 2025 and 2026, which run from February through January. Net income increased through 2022, dropped sharply in 2023, recovered in 2024 and then declined again, though at a slower pace, in 2025 and 2026.
On the earnings call, Fiddelke said Target's new strategy is organized around four priorities: merchandising, guest experiences, accelerating technology and strengthening team and communities.
"If I were to step back and draw 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," he said.
At the center of those changes are transformations of in-store floor plans and displays, the addition of workers and expanded training and deeper integration of technology, including artificial intelligence, to make shopping easier and more personalized, according to company statements.
Target also plans to increase its capital investment and expense plans by more than $1 billion in calendar 2026, bringing total capital spending to about $5 billion for new stores, remodels, technology and supply chain projects affecting both retail and logistics locations. As part of that plan, the company aims to add 300 new stores by 2035 and complete more than 130 full-store remodels.
Later this year, Target will debut its new immersive Target Beauty Studio destination, while stores undergoing building and remodeling will allocate more space to food and beverage. The retailer also intends to expand its next-day delivery capabilities to 20 additional metro areas this spring.
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