Some may agree with the saying that “you can’t teach an old dog new tricks,” and in Target’s case, that sentiment may be difficult to ignore.
Target says it is acting with renewed “urgency,” as it has been “far from satisfied” with its recent financial performance. The retailer insists it will not rest until it is operating at its full potential, according to comments from Target COO Michael Fiddelke during the company’s latest earnings call.
That urgency comes after several challenging years for the company. Target has faced declining sales, shrinking traffic, and a loss of market share to competitors, compounded by backlash tied to several controversial business decisions. Among them were changes to its DEI initiatives, which sparked consumer boycotts and ultimately led to a class-action lawsuit filed by its own shareholders in 2025.
In response, Target has implemented a multi-year strategy aimed at returning the business to profitable growth, with the goal of generating over $15 billion in sales by 2030.
To achieve this objective, the company states that it will prioritize product “newness,” expand assortment based on customer needs, deliver value, and continuously enhance its shopping experiences to position itself as a one-stop shop.
This strategy also coincides with a major leadership transition, as Target CEO Brian Cornell will move into the role of executive chairman, while current COO Michael Fiddelke is set to become the new CEO in February 2026.
However, despite its emphasis on innovation, Target appears to be leaning once again on old playbooks. Its latest initiative closely mirrors strategies it already tried just last year in an effort to reverse declining sales and traffic, which have yet to deliver consistent results.
In early 2025, Target expanded its wellness assortment by adding 2,000 new products, with more than half priced under $10. The retailer also sealed several high-profile partnerships across categories, including a collaboration with the fitness company Peloton and a multi-year deal with the apparel brand Champion.
Target expands its wellness assortment again
Now, Target (TGT) is doubling down on wellness once more. The company is introducing 30% more new and exclusive wellness items at affordable prices, including thousands of products priced under $10.
The wider assortment aims to align with evolving consumer trends and keep Target’s offerings fresh, while helping customers stay committed to their New Year’s resolutions.
“About 70% of guests are already shopping wellness at Target and right in time for the new year, we’re bringing them even more newness and value by adding some of the most trusted, relevant and inspiring brands across our assortment,” said Target Executive VP and CMO of Food, Essentials, and Beauty Lisa Roath in a press release.
“Our goal is to make wellness really accessible — fun, easy, affordable, and personalized — so consumers can focus on building routines that help them look and feel their best.”
Target’s expanded wellness lineup
- Protein: Expanded offerings from ButcherBox, along with more on-the-go protein snacks and powders
- Supplements: New immunity and gut health supplement options
- Functional and non-alcoholic beverages: Addition of mushroom coffee, protein beverages, and new non-alcoholic cocktail options
- Modern solutions for families: Gentler body care, home appliances, baby formula, vitamins, and more
- Self-careproducts: Affordable, high-quality, dermatologist- and clinician-backed skin care products and brands
- Performance-ready apparel: More than 1,000 new apparel and accessories, updated collections, and a Valentine’s Day drop
Beyond product expansion, Target is also revamping both its in-store and digital experiences to make shopping more convenient and engaging for customers.
Target’s revamped shopping experiences
- Wellness events: In-store events with product sampling and giveaways, launching for the first time
- Redesigneddisplays: Exclusive JoyLab Glow Studio apparel and accessories placed at the front of stores, alongside curated cross-category wellness displays
- Refreshed Wellness Hub: Personalized product recommendations
- Revamped “Eat Well Your Way” experience: Easier shopping based on dietary preferences
- Wellness, Perfectly Picked for You: A new marketing campaign highlighting new brands and exclusive products that make it easier to find wellness solutions
Customers can shop the expanded wellness assortment in stores, on Target.com, or through the Target app, with fulfillment options including Same Day Delivery, Drive Up, and Order Pickup.
Target’s battle to revive growth
Target’s broader business remains under pressure. In the third quarter of fiscal 2025, net sales declined 1.5% year over year, while comparable sales fell 2.7%, driven primarily by lower traffic and a decrease in average transaction size.
However, there were some bright spots. Target’s Beauty, Food & Beverage, and Hardlines categories posted growth, which may explain why the company is focusing its expansion efforts in those areas, particularly wellness.
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Still, the rise of e-commerce and the continued challenges facing brick-and-mortar retail have also impacted performance. While more than 80% of customers continue to shop in stores, digital comparable sales rose 2.4% year over year, with store-originated sales down 3.8%, according to the company’s latest earnings report.
Per the previous results, Target is maintaining its outlook for a low-single-digit sales decline in the fourth quarter of 2025.
“Our business has not been performing up to its potential over the last few years, and I am singularly focused on supporting Michael and the entire leadership team as they make changes to the way we work, enhancing our merchandising authority, our retail experience, and investing in technology to accelerate our business,” said Cornell in the company’s latest earnings call.
“The team is working quickly to get the company back to profitable growth. And while we’re not there yet, I’m confident we’re on the right path, and Michael is the right person to lead the next chapter of Target’s growth.”
Industry experts weigh in on Target’s future
Despite Target’s recent struggles, some industry experts see room for cautious optimism.
“We are seeing the early stages of recovery, but it’s going to be a long 12-month haul before we see a full bounce back of the ‘Tarzhay’ we all know and love,” said RepTrak Chief Reputation and Strategy Officer Stephen Hahn-Griffiths to Forbes. “It’s just going to take some time to recover from those recent misdemeanors.”
Rezolve AI Chief Growth Officer Roland Gossage, a retail veteran with over 20 years of experience, said Target must focus on the basics, not just novelty.
“Target will need to go beyond the novelty of these in-store experiences and ensure that at the end of the day, they’re delivering on these key factors of a good retail experience first,” said Gossage to The Street. “That extends to online and mobile shopping as well.”
Additionally, the newly implemented U.S. tariffs on foreign goods could force Target into difficult trade-offs between driving sales growth and protecting margins. Some analysts warn that the retailer may ultimately be unable to do either.
“[Target] is unlikely to achieve both and, increasingly, neither,” analysts at Investment firm Bernstein told Stocktwits.
Other retailers pursuing similar assortment strategies
Target is not alone in leaning on assortment expansion and category refreshes to drive traffic and restore growth. Several major retailers have taken similar approaches in recent years.
Target competitors’ strategies
- Walmart: Expanded health and wellness offerings across multiple categories, maintaining its emphasis on value (Source:EMarketer)
- Costco: Continued to grow its Kirkland Signature private-label brand, offering high-quality products at affordable prices, which has helped it boost sales and membership loyalty (Source:Forbes)
- Kohl’s: Invested in wellness and athleisure through initiatives like Kohl’s Wellness Market and introduced private-label activewear brands to appeal to health-conscious shoppers (Sources:Retail Dive and Forbes)
- Amazon: Streamlined and unified its private-label grocery brands to simplify discovery, reinforce value messaging, and remain competitive (Source:Amazon)
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