Target Unveils Turnaround Plan as New CEO Aims to Win Back Shoppers

Target is rolling out an ambitious plan to win back customers after several difficult years marked by falling sales, stock declines and increased competition.

New CEO Michael Fiddelke, who stepped into the role last month, says the company is focused on improving products, redesigning stores and investing heavily in operations. Speaking at an investor event at the company’s Minneapolis headquarters, Fiddelke outlined what he called Target’s “next chapter of growth.”

The retailer plans to increase capital spending by 25% to $5 billion this year. The investment will support store improvements, technology upgrades and operational changes aimed at improving the customer experience.

Target is also expanding offerings in key categories including food, beauty, apparel and home furnishings. In beauty, the company is introducing trendy brands such as Supergoop sunscreen. It also plans to add more sports and games merchandise for children.

Retail analysts say beyond adding popular brands, Target must also address operational challenges. The company has faced complaints about messy stores, empty shelves and long checkout lines. Analysts note that keeping nearly 2,000 stores fully stocked and properly staffed is a major challenge.

Fiddelke takes over at a critical moment. Target has faced stiff competition from Walmart and Amazon, while also navigating strategy shifts that drew criticism from some customers. Over the past three years, the company’s stock has fallen nearly 30%.

The retailer reported that sales at stores open at least one year dropped 2.5% in its most recent quarter, though company leaders say February sales showed improvement. Target expects overall sales growth of about 2% this year.

Supporters of Fiddelke say his long history with the company positions him well to lead its recovery, noting his deep understanding of both its strengths and weaknesses.

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