Target’s new CEO, Michael Fiddelke, who assumed leadership in 2026, has revealed plans to rebuild the company following a challenging period for the retailer. Target will share more details about its turnaround strategy at an investor event on Tuesday.
Fiddelke said Target would improve its merchandise and store design to win back shoppers, increasing capital spending by 25% to $5 billion this year to bolster operations, technology, and other areas of the business.
Fiddelke told investors, “I’m incredibly proud of how our team navigated through a challenging year in 2025, as they focused on serving our guests while positioning our business for profitable growth in 2026 and beyond. Our team is firmly focused on writing Target’s next chapter of growth, rooted in strengthening our merchandising authority, delivering an elevated and differentiated shopping experience, advancing our use of technology, and continuing to serve and invest in our team and communities. Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we’re building and the future we’re creating together.”
For 2026, Target expects net sales growth of around 2% compared with 2025.
The company forecasts the full-year 2026 operating income margin rate to be approximately 20 basis points higher than the 4.6 percent adjusted operating income margin rate in 2025.
Target shares increased 1% following the announcement.
By CEO NA Editorial Staff
