Overview
- Target will boost capital spending to $5 billion next fiscal year—about $1 billion more—to fund remodels, larger-format openings, and upgrades to supply chain and technology.
- Company veteran Michael Fiddelke takes over as CEO in February with Brian Cornell moving to executive chair, as Walmart prepares its own handoff to incoming chief John Furner.
- Target reported continued declines in traffic and sales and nearly a 20% profit drop in the latest quarter, contrasted by Walmart’s broad-based sales gains.
- Executives are addressing pricing, store conditions, and inventory issues after an 8% corporate staff cut, as some analysts blame self-inflicted missteps and note market share losses.
- Early efforts include improved on-shelf availability, stronger hardlines sales, AI shopping tools through a new OpenAI partnership, a fulfillment pilot to ease busy stores, and category resets including future health and beauty changes after the Ulta tie-up ends in 2026.