Target has outlined a multi-year strategy to address declining sales, with grocery playing a central role. The retailer plans to increase the size of its grocery departments and boost the number of new food and beverage products by nearly 50%.
The company will invest an additional $1 billion in operations in 2026, including store updates, enhanced displays, and increased payroll and training. Capital spending will also rise to about $5 billion to support new stores, remodels, technology, and supply chain improvements.
Target expects to open more than 30 new stores this year and remodel over 130 locations as part of the plan.
Store traffic declined during most of the second half of 2025, including a 2% year-over-year drop in the fourth quarter, according to Placer.ai.
