New Target CEO's plan to get back to "Tar-zhay"
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Michael Fiddelke (left) lays out his plan for Target. He's joined by chief merchandising officer Cara Sylvester and chief financial officer Jim Lee. Photo: Nick Halter/Axios
New Target CEO Michael Fiddelke laid out his plan to turn around the struggling Minneapolis retailer on Tuesday.
Why it matters: Fiddelke is not only trying to win back shoppers, but also assure skeptics on Wall Street that an insider can bring about significant change.
By the numbers: Target's share price jumped by 7% following Tuesday's earnings report and a prediction that revenue will grow again in 2026 after three years of declining comparable sales.
The big picture: A key to Fiddelke's plan is getting the "Tar-zhay" buzz back by fixing the company's home and apparel categories, which have been losing market share.
Here are some highlights that executives unveiled to the media and financial community at their headquarters:
👖 Faster fashion: Right now, Target is going heavy into the Western look, with cowboy hats, fringe jackets and bags, and embroidered jeans, but that focus will shift every four to six weeks as the company detects new trends.
🛏️ Home goods overhaul: New chief merchandising officer Cara Sylvester said Target is "reclaiming our style authority in home."
- By June, the company will have turned over 75% of its home decor line, including things like pillows, bedding, candlesticks and vases.
🧢 Sports merch: The small-team licensed apparel displays will be expanded and moved to more prominent spots in stores. The company calls this "Fan Central," and mockups show a larger collection of team hats, shirts and memorabilia.
💄 Beauty: The Ulta mini-shops are going away and will be replaced by Target's new "prestige" collection called "Beauty Studio" in 600 stores, with a loyalty component set to roll out later.
🛒 More food: Grocery has been a bright spot, as the company reported 8% average annual sales growth since 2019, with an increased focus on private label and upcoming brands.
- As the company builds new stores and remodels existing ones, it will allocate more space for groceries.
💰 Capital expenditures: Target said it's increasing its capital spending by 25% compared to 2025. It will open 30 full-size stores and remodel another 130.
Reality check: Target leadership faced criticism from some analysts who said this was much of the same as what they saw under former CEO Brian Cornell, and pressed them on how these changes would lead to sustained sales growth.