How Target’s CEO Will Boost Growth with Turnaround Strategy

Target’s CEO, Michael Fiddelke, has announced a new company strategy to drive long-term, sustainable growth for 2026.

The company plans to open more than 300 new stores by 2035 and implement an extensive store remodelling process for existing sites. 

The new goals are backed by the company’s US$5bn capital investment plan for 2026, reflecting its commitment to deliver an elevated shopping experience.

Strategy goals: AI, marketing and technology

The investment programme aligns with Target’s cosmetic and operational improvement plans, a series of goals that will see a refresh of store departments. 

Improvements include new store displays, store expansions like Target’s new beauty studio, and enhanced systems like the expanded reach of its next-day brown box service.

These investments will help the company deliver against Michael’s strategic growth priorities, acting as a guide for Target’s decision-making in 2026 and beyond.

The company plans to make an incremental US$1bn operating investment to develop several areas within the customer and employee experience.

Areas include updating floor plans and enhanced in-store displays to showcase products, new styles and partnerships, greater investment into store payroll and training, and increasing spend on brand marketing and technology, including AI.

The company is expecting a 2% growth in net sales compared to the previous year, alongside a small increase in Target’s comparable sales.

Discussing Target’s growth strategy, Adrienne Costanzo, Chief Stores Officer, says: "Every time we open a new Target store, we're planting roots in that community [...]. 

“We're creating growth and opportunity — through good jobs, support for local nonprofits and long-term economic investment in the neighborhoods we serve. When our teams and communities thrive, so do we."

Target’s priorities include refreshing all merchandise offerings, improving the in-store and online experience, developing new technologies to enhance efficiency and strengthening work communities by investing in training and career development.

“We need our experience to delight guests every time,” Michael adds. “And to be crystal clear, there’s real work for us to do here. 

“That’s why we’re strengthening reliability and service end-to-end as well as making meaningful investments in payroll and training that our teams need to consistently deliver for our guests.”

Long-term growth

In February 2026, Michael wrote to Target’s customers, staff and business partners in his first letter as company CEO, highlighting his two-decade tenure with the company and his leadership commitments for the short and long term.

He reiterated his pledge to improve the brand’s authority on store merchandise and to utilise technology to help staff create personalised, entertaining experiences for customers.

He also discussed the importance of societal growth and Target’s role within it, acknowledging the need to invest in people and build future-ready skills to effectively serve its community.

Target faced controversy last year, when employees voiced their concerns over the company’s response to employee safety and the actions of Immigration Enforcement Agents.

Target has stated that it intends to cooperate with Immigration Enforcement and that it is working to de-escalate potential conflicts where possible.

Setting his priorities for 2026 and beyond, Michael says: “In the weeks ahead, my focus is simple: listen closely, move with clarity and urgency, and lead with purpose,” Michael says. “We will make clear choices, invest where it matters most and bring this strategy to life through our stores, our digital experiences, and — most importantly—our people.”