Target's New CEO Has a Plan to Win Back Customers

Target is aiming to break out of its sales slump by winning back customers with redesigned stores and a host of new products that appeal to busy families. Here is a look at what the retail giant's new CEO said about its plans going forward.

How Target Plans to Win Customers Back

Target CEO Michael Fiddelke has been on the job for just a few weeks, but he is already making bold statements about the retailer's growth strategy. At an event for investors on Tuesday, Fiddelke said that Target is going to improve its offerings and redesign its physical stores in an effort to "get Target back to growth."

During the event at the company's headquarters in Minneapolis, Fiddelke said that Target is going to focus on winning over busy families as it moves forward. This strategy includes increasing its capital spending to $5 billion, a jump of 25%. The massive boost in capital spending will be used to improve operations and upgrade technology to facilitate a better customer experience both online and in stores.

Fiddelke also said that the company is going to add more trendy brands to its offerings, solidifying its reputation as the nation's premier retailer for cutting-edge products at low prices. Target entered the crowded big box retailer field and built its initial success by offering stylish clothes and furnishings at affordable prices.

However, the retailer has struggled in recent years, experiencing slumping sales and backlash after getting rid of its Diversity, Equity, and Inclusion (DEI) policies. Target recently added new members to its governing board while also refreshing its executive leadership in order to right the ship.

Target's chief competitors are Walmart and Amazon. While Walmart has the market on the best prices and Amazon wins out on convenience, Target believes it can stand out from the pack with its fun vibe and expectation of never knowing what kind of goodies you will find when you walk through the store's doors and grab a signature red cart to fill.

Part of the plan to boost sales includes adding new items to the categories of home furnishings, apparel, beauty, and food. These categories are a core focus of Target's niche offerings. The retailer is also committed to launching new partnerships with a variety of upscale vendors to get more people to visit the storefront.

For instance, the company is going to offer the popular Supergoop sunscreen in its beauty section. Target also plans on winning over the younger demographic with more sports and games merchandise. The company plans to continue to emphasize its upscale beauty section, offering products at a wide range of price points that appeal to both budget-minded and brand-conscious consumers.

Fiddelke is addressing customer complaints about long checkout lines, staffing issues, and empty shelves by allocating more funds for capital upgrades. The company has had a challenging time in recent years keeping stores clean and shelves full. Retail analysts have been saying for months that Target needs to invest more in labor to keep the stores running as they did during its peak.

Target's Struggles as of Late

Target has been bleeding money and customers as of late. Stock prices have dropped by almost 30% over the last three years. Robust competition from Walmart and Amazon has been blamed for the languishing sales.

The stagnated sales happened just when leadership made the decision to pull back on its Pride Month in-store displays and eliminate its DEI programs under pressure from the Trump administration. These moves were met with disapproval from its liberal customer base. Some customers made the decision to boycott the store in response to these strategy mistakes.

The 2025 holiday season was also not kind to the retailer. Sales at stores that have been operating for at least one year fell by 2.5% over the last quarter of 2025, a time when sales generally inch up as holiday shoppers turn out. Without a robust holiday season, it is difficult for any retailer to turn a profit for the year as a whole.

Target is offering hope to investors that things are turning around. In addition to stronger February sales, the company said it is expecting total sales to increase about 2% in 2026.

While many on Wall Street had hoped that Target would bring in a new face to address the company's woes, Target instead turned to insider Fiddelke. The new CEO started his career as an intern back in 2003, quickly rising up the corporate ladder. Fiddelke's supporters say that he knows every detail about the company, including how to fix its primary weaknesses.

Only time will tell if Fiddelke is the answer to Target's stagnant growth.

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