Target To Spend $1B On New Stores And Renovations
After another disappointing year in revenue, Target is seeking a course correction led by improvements across its roughly 2,000-store network.
New Target CEO Michael Fiddelke is earmarking $1B of a $2B brand refresh for capital expenses to develop new stores and renovate existing locations, SeekingAlpha reported. The company aims to open 30 new stores in 2026 and 300 by 2035.
The retail chain also plans to completely remodel more than 130 stores this year, Fiddelke said during Target's Q4 2025 earnings call Tuesday.
The combined changes undertaken by the company are expected to fuel roughly 2% of sales growth in 2026, Fiddelke said.
“We know our guests tell us clearly, when we remodel a store and bring our latest and greatest experience to bear, the response is reliably strong,” he said.
Target’s stock price began rising ahead of the earnings call and reached $123.96 on Wednesday morning, the highest it has been in roughly a year.
It has been a turbulent few years for Target.
The chain by and large has seen declining sales since 2022, starting when the buying behavior of U.S. consumers shifted coming out of the pandemic. Target struggled with a glut of inventory that was in high demand during the lockdowns.
The chain's brand was dimmed by a series of protest movements on both sides of the political spectrum.
In 2023, conservative activists boycotted Target in response to its Pride Month merchandise collection. There was then a reciprocal backlash from some on the political left when the company minimized the prominence of LGBTQ+ imagery and merchandise in response to the earlier boycott.
Another boycott began last year after Target rolled back some of its diversity, equity and inclusion policies.
Most recently, the U.S. Immigration and Customs Enforcement crackdown in Minneapolis, where Target is headquartered, has also thrust its stores into the spotlight and drawn the ire of some shoppers. After a video showing ICE officers detaining a U.S. citizen inside the store went viral, activists began a new wave of protests of the chain.
Target reports that its full-year revenue fell 1.7% to $104.8B in 2025, and its net sales in Q4 2025 fell 1.5%.
