e explained that 2025 was a year of cleanup and that 2026 would centre on positioning the company for profit. “Our team is firmly focused on writing Target’s next chapter of growth, rooted in strengthening our merchandising authority, delivering an elevated and differentiated shopping experience, advancing our use of technology and continuing to serve and invest in our team and communities,” said Fiddelke. So far, it seems he is delivering on those promises, with an aggressive approach to store updates and expansion, a refreshed product assortment and several community-driven initiatives aimed at rehabilitating the brand’s image. As retail strategist Christine Russo, principal of Retail Creative and Consulting Agency (RCCA), told Inside Retail, “Target started 2026 from an offensive position and is leaving behind the defensive stance of 2025. This year, in contrast, the company has released new messaging that conveys its focus on the front of house. It is focused on both the shopper and associates. “This commitment is supported by a five billion capital investment, coupled with hundreds of millions in payroll, labour, hours and training. What does this accomplish for the greater good? New jobs, higher wages and better shopping experiences. The company stated it will focus on trends, using style, design and value as guiding principles.” Updating operations and launching bigger, better stores As Russo pointed out, last year brought community boycotts of Target and resulted in the retailer’s lowest capex spend in five years, at roughly $2.9 billion, which were not visible to the public. “The spend was rooted in efficiency,” said Russo. “Areas of spend included HVAC systems, roofing, flooring, security technology, theft-deterrent fixtures, digital locked cases, sorcentrescenters, backroom reconfigurations, Drive Up infrastructure, construction-in-progress completion, large-format blueprints, GenAI integration, conversational assistants, Target Circle backend and personalised discounting technology.” With those changes in place, Target has been steadily progressing its plan to remodel over 130 stores by the end of the year and open 300 new stores by 2035. In fact, Target is set to launch six new locations in May alone, including two stores in Arizona, one in Missouri, one in New Jersey and two in North Carolina. Five of the soon-to-be-opened stores exceed Target’s 125,000sqft chain average, with two locations nearing 150,000sqft. Neil Saunders, an analyst at GlobalData, said the store expansion is part of Target’s ongoing plans to get closer to customers in areas where it is underrepresented. “Despite recent issues, Target has a proposition that broadly works, and it knows it can generate sales by opening new stores in such locations,” he said. “Focusing on larger stores is deliberate. These formats are significantly more productive and allow Target to showcase its latest thinking, such as a better grocery offer and more space for hero categories like beauty. “Within stores, Target is focusing on areas where it sees growth potential. Fun categories, such as trading cards, are one of these, which is why it is pursuing more collaborations. This also aligns with its aim of attracting family shoppers.” Target has also recently generated excitement with its soon-to-be-released, limited-time Pokémon collection celebrating 30 years of the iconic animated brand. The collection features over 100 items across apparel, accessories, home goods, food and beverage and more and will be rolled out in two phases. About 65 items will launch on May 2, followed by around 40 additional items on June 6. Beyond the excitement of the Y2K-themed launch, Target is also aiming to generate positive PR with its community-focused Bullseye Builds with Community Program. Announced on April 20, Target stated that the initiative is a signature community activation that brings together its volunteerism and design expertise to meet local needs. Target will complete 13 Bullseye Builds in 2026 in neighbourhoods where it operates, supported by a $1 million investment, hands-on volunteer efforts from team members and partnerships with nonprofits and community members to revitalise shared spaces based on identified local needs. “Bullseye Builds is a program that underlines Target’s community efforts,” said Saunders. “Target has always donated time and money to communities, but this has been somewhat overshadowed by the DEI issues, so it is keen to underline how much it does in this area.” How Target still needs to take a more offensive approach Despite some positive steps, several retail experts concluded that Target still has its work cut out for it. Moving forward, Russo outlined several steps Target can take to boost productivity and rehabilitate its image, including: Leaning into fandom “Fandom is a market mover and is widely recognised as an effective way to reach customers in a noisy space.” Avoiding markdowns “Lean into technology tools to have the right product at the right time and in the right quantity. This will help avoid margin pressure from markdowns.” Pushing into personalisation “Personalisation can go a long way in rehabilitating the brand’s image and repairing its emotional connection with customers. At the heart of the issue was that customers felt unseen, particularly in the case of DEI. “Personalisation is a way to ‘see’ each customer, both digitally and in person. A simple store greeter and workforce teams that remember frequent visitors can be inclusive. Tailoring products digitally is another way for customers to feel seen. “There is a lot more work to be done in improving existing stores and enhancing the offer – and these changes will take time to filter through to public perception – but things appear to be moving in the right direction.” Further reading: Can Target’s US$15 billion comeback plan revive its struggling sales?