Target sees unexpected shift in customer behavior

Under its new CEO, Target has been making major changes to its stores in recent months to reconnect with customers after years of declining sales. As the company’s new strategy rolls out, it is seeing an unexpected shift in customer behavior as it works to regain its footing in retail.

In February, Michael Fiddelke became Target’s new CEO. The leadership change came after the company struggled to boost its sales last year amid consumer boycotts over its rollback of diversity, equity, and inclusion policies.

It also faced challenges in attracting price-sensitive consumers into its stores due to economic pressures such as tariffs, inflation, and a slow housing market.

In 2025, Target’s comparable sales decreased by 2.6% year over year, while its operating income declined by roughly 8%, according to its fourth-quarter earnings report for 2025.

Target bets on major store changes to rebuild customer loyalty

Shortly after stepping into the role of CEO, Fiddelke sent a memo to employees, stating that Target has “real work to do” to re-engage customers.

He broke this task down into four main steps: “leading with merchandising authority,” “elevating the guest experience,” “accelerating technology,” and “strengthening our team and communities.”

“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,” said Fiddelke in the memo.

Since launching this new strategy, Target has made several significant in-store changes. In March, it launched a new Baby Boutique department in hundreds of its stores, which features 2,000 new baby items, including premium brands. It also expanded its Baby Concierge service.

Additionally, it added a front-of-department gifting area in almost 1,000 stores. In April, Target introduced viral apparel brand Parke to its stores, with most items priced under $40. It also added a limited-time Pokémon collection to its shelves.

Currently, it is remodeling 130-plus stores, featuring expanded grocery selections, modern décor and fixtures, and updates to self-checkout. Remodels also include updated spaces and expanded services to support order pickup, Drive Up, exchanges, and returns.

Target’s turnaround push draws unexpected reaction from shoppers

As Target’s new strategy continues to unfold, the company saw comparable sales increase 5.6% year over year in the first quarter of 2026, according to its latest earnings report.

Foot traffic in Target’s same-store locations also increased by 7.1% in February, 6.5% in March, and 4.8% in April, according to recent Placer.ai data.