As announced at its financial community meeting on 3 March 2026, the company will allocate an additional $1bn this year towards operating investments, which include changes across all stores such as updated floor plans and enhanced displays to improve guests’ experience.
During the year, the retailer is also investing in additional store payroll and team development. Additional funds will be directed to brand marketing and new technologies, including AI.
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Target is also increasing its capital investment by more than $1bn in 2026, bringing total planned capital spending to around $5bn for the year.
These funds will support the opening of over 30 new stores on the way to a target of 300 new locations by 2035, as well as more than 130 full-store remodels.
The retailer will mark the opening of its 2,000th store later this month in Fuquay-Varina, North Carolina.
Target CEO Michael Fiddelke said: “This new chapter of growth at Target is defined by clear choices and rooted in a deeper understanding of our unique lane in retail, the guests we serve and the areas where we’re distinctly positioned to win.
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By GlobalData“This work is underway, and by putting style, design and value at the centre of every decision, we’re making big changes to lead with a trend-forward assortment, elevate the guest experience, accelerate with technology and equip our teams to deliver the most delightful experience in retail, for today and over the long term.”
Target’s strategic priorities
Target’s approach is anchored by four main priorities that will shape its decisions and investments in 2026 and beyond:
- Establish merchandising leadership by introducing unique, culturally relevant assortments focused on style, design, and value.
- Improve the guest experience through enhanced digital tools and in-store offerings while deepening loyalty and engagement.
- Advance technology to enable teams to operate more efficiently and deliver more tailored experiences for customers.
- Support employees and local communities by increasing investment in training, career development, and community initiatives
In the women’s style category, Target will use its internal design resources and trend-tracking technology to introduce new styles to customers more quickly. The assortment will prioritise denim and everyday basics, while incorporating additional seasonal selections and collaborations throughout the year.
The retailer also aims to strengthen digital platforms through further investments in technology and AI.
The same-day fulfilment services, which currently account for two-thirds of digital sales, will be enhanced for speed and efficiency.
Target will also expand its next-day brown box delivery service into 20 additional metro areas this spring, making the service accessible to 60% of the US population.
