Target’s New CEO Unrolls His Blueprint for Growth

One month into his tenure as the top boss at Target Corp. (Minneapolis) Mike Fiddelke has unveiled a $2 billion plan for revitalizing the once-trendy chain. The retailer detailed that roadmap in its annual meeting with financial analysts that was held a few hours after Target released its year-end results for 2025, which showed the discount retailer continues to struggle on a number of fronts.

The plan includes two major initiatives: the first involves increasing its capital investment plans by more than $1 billion in 2026 — for a total of roughly $5 billion — to support new stores and ongoing remodels, technology and supply chain investments. More specifically, the retailer expects to open more than 30 new stores this year as part of its path to 300 new stores by 2035, while also investing in over 130 planned full-store remodels.

The plan’s second major thrust involves making an additional $1 billion operating investment to deliver a more consistent, elevated experience for guests. This includes:

• More changes within all stores than any year in the last decade, including updated floor plans and enhanced in-store displays across the chain to spotlight top items, new styles and key partnerships.
• Hundreds of millions of dollars in additional store payroll and training in 2026. The investment is designed to drive greater consistency and help teams deliver an in-store experience centered on being delightful, inspiring and easy.
• Increasing spending on brand marketing and new technology, including AI.

“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,” said Fiddelke. “This work is underway, and by putting style, design and value at the center 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.”