New Target CEO Michael Fiddelke laid out his plan to turn around the struggling Minneapolis retailer yesterday.

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 yesterday'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 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 pillows, bedding, candlesticks and vases.

🧢 Sports merch: Small team-licensed apparel displays will be expanded and moved to more prominent spots in stores. Mockups of these "Fan Central" kiosks show a larger collection of 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.

• Target will allocate more space for groceries in new or remodeled stores.

💰 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.

• They pressed Fiddelke on how these changes would lead to sustained sales growth.

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Gov. Tim Walz returns to the Capitol Hill hot seat today.

What's happening: The governor, along with Attorney General Keith Ellison, will testify at an 8am House Oversight Committee hearing on fraud and "misuse of federal funds."

The big picture: The hearing is the latest front in an escalating political battle between state and federal officials over whether Minnesota has done enough to stop significant fraud in Medicaid-funded social services programs.

• Top Trump administration officials vowed yesterday to fight Minnesota's efforts to unfreeze $259 million in Medicaid funding owed to the state.

Between the lines: Walz and Ellison will both testify under oath, meaning they're legally bound to tell the truth.

What to expect: Fireworks, in the form of probing questions and political theater. These hearings are often designed to produce made-for-social-media exchanges.

• Walz will defend his administration's efforts to address the issue and push back against "political retribution" by the White House.

What they're saying: "Americans deserve answers about the rampant misuse of taxpayer dollars … that occurred on [Walz's and Ellison's] watch," Committee Chair James Comer (R-Ky.) said in a statement.

The other side: "The governor takes Congress seriously, and his hope is that Congress will take Congress seriously," a Walz spokesperson told Axios.

The intrigue: Walz's office spent over $400,000 on lawyers to prepare him for another hearing on immigration last summer.

• The administration confirmed it hired the same firm ahead of this appearance, but said a cost estimate was not immediately available.

What else we're watching

Nicole Amor, 39, of White Bear Lake, was one of four Army Reserve soldiers killed Sunday in Kuwait while supporting the U.S. attacks on Iran, according to the Department of Defense. (Star Tribune)

🏟️ The Minnesota Wild and St. Paul officials will again ask state lawmakers to help fund $600 million in renovations to Grand Casino Arena and the neighboring convention complex. (Fox9)

• The latest push follows two years of false starts at the State Capitol.

⚖️ A federal judge hasn't ruled out imprisoning Department of Justice officials for what he termed repeated violations of court orders in immigration cases. (Sahan Journal)

• At a hearing yesterday, Minnesota's U.S. Attorney Dan Rosen accused the judge of "smearing" him.

🤫 The University of Minnesota has approved 33 "restricted" research projects since 2020. (Minnesota Daily)

• Such projects can be kept secret, even from other academics.

📲 The DNR now says a long-delayed mobile app for fishing, hunting and boating licenses will be ready by the spring, though a launch date still hasn't been set. (Background via Axios)

The tooth fairy has brushed off two years of declines, and now leaves an average of $5.84 per lost tooth under American kids' pillows.

• That's up 83 cents from last year, according to Delta Dental's annual poll.

Zoom in: Broken down by region, Midwestern kids saw the greatest increase per tooth — a 52% leap to $5.27.

Attention Muzak lovers, Minnesota Driver & Vehicle Services needs your help choosing new hold music for its customer service line.

Why it matters: DVS' survey is a rare opportunity to choose the exact manner in which you'll be tortured for an average of six to nine minutes.

Yes, but: We kid! And we applaud DVS for seeking input.

• "Rather than just pick something, we decided to encourage customer involvement," a spokesperson told Axios.

We listened to the four piping hot tracks DVS is considering:

• "My Time To Fly": Eerily close to the opening lick of "Santa Claus is Comin' To Town," but with all traces of Christmas spirit sucked out.
• "This and That is Life": The hollow instrumentals of a Jason Mraz bop with any redeeming lyrics removed.
• "Everywhere The Sun Shines": That one Peter Bjorn And John song, but with the whistling inexplicably turned up to 15.
• "Throw Yourself In Front Of It": Like a Red Hot Chili Peppers track — but without the Red Hot.

How to vote: Listen to the options at 469-397-3737, take an aspirin, then vote online before the end of March.

Tell a friend to hold the line