Target is determined to fight the challenges that have affected its business with aggressive investment plans for 2026, including refreshing the store experience chainwide and opening 30 new stores on the path to opening a total of 300 new locations by 2035. This year, the retailer will increase its capital investment by more than $1 billion, for a total of approximately $5 billion, to support new stores, ongoing remodels, technology and supply chain investments.
Additionally, Target will use an incremental $1 billion operating investment to update floor plans and in-store displays chainwide; provide hundreds of millions of dollars in additional store payroll and training; and increase spend 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 Michael Fiddelke, CEO of Target in a statement.
After experiencing a series of setbacks last year, Target has been working hard to bring customers back to its stores. Upon taking the reins in February, new CEO Michael Fiddelke laid out four key priorities for the retailer, one of which was enhancing its merchandising authority by “curating with conviction.”
Target Debuts In-Store Baby Concierge Service
Rendering of Target Baby Boutique. Image courtesy Target.
One of the new initiatives designed to enhance the guest experience is the addition of nearly 2,000 new items to Target’s Baby Boutique. Launching in nearly 200 stores this month and refreshing online on March 15, the new Boutique assortment will feature premium brands such as UPPAbaby, Bugaboo, Stokke and Doona.
Additionally, Target will expand its Baby Concierge service, powered by Tot Squad, to its in-store Baby Boutiques. Currently available virtually, Baby Concierge will offer one-on-one in-person expert guidance available by appointment. This pilot is designed to provide parents with a trusted resource when questions come up, ranging from choosing the right bassinet to comparing baby monitors.
Last month Target expanded its partnership with Levi’s to a total of 1,000 stores and kicked off a collaboration with cult lifestyle brand Roller Rabbit.
