Target's turnaround plan is finally taking shape

About three-quarters of Americans live within 10 miles of a Target. But despite that proximity, the big box store has been struggling to attract shoppers.In the second half of 2025, foot traffic at Target’s 2,000 U.S. locations declined in every month except October, recent Placer.ai data shows. That slow down in foot traffic led to a 1.7% decrease in net sales for the year, the company’s FY2025 earnings report revealed.We’ve covered Target’s decline pretty extensively here at TheStreet. Last month, Maurie Backman called it “one of the saddest retail stories in recent history.”But Target doesn’t see it that way.CEO Michael Fiddelke recently declared it “a new chapter at Target,” telling investors during Target’s Q4 FY2025 earnings call that the company has plans to become “the most delightful experience in retail.”Target’s “delightful” goalMore concretely, Target has said that its turnaround plan will address the foundational elements of a great shopping experience — convenience, speed, and price — with the hopes of making the customer experience a better one.“Delight is our standard,” Fiddelke told investors. “That means getting the basics right. Sharp pricing, strong in-stocks, wicked fast same-day delivery. Our bar is higher. We want to spark an emotional connection, so shopping isn't a chore, it's a joy.”Of course, the turnaround has had its skeptics. GlobalData Retail Managing Director Neil Saunders is among those doubters.“Visiting Target stores is less pleasurable and less fun than it used to be,” Saunders told CX Dive. “There is far too much friction, and the experience is sometimes unpleasant. That’s an issue as it lowers the probability of people making visits, reduces visit frequency, and weakens conversion and basket size when people are in stores.”The retailer says it’s aware of these issues and has outlined a game plan to remedy all of the complaints. However, in a company of Target’s size, major changes can be slow to roll out, and it can take even longer for customers to feel their effects.“Every retailer, and really every physical store location, has a culture,” Gartner Director Analyst Brad Jashinsky told CX Dive. “You can’t just throw people at the problem and solve it overnight.”Given that, many weren’t expecting Target’s return to happen anytime soon. But it appears they may have been wrong. Target saw an uptick in foot traffic during the first weeks of 2026, signaling that its turnaround plan is starting to bear fruit.Sundry Photography/Shutterstock Target’s traffic increaseFrom the week of January 26 to March 22, foot traffic at Target has been steadily increasing, new data from Placer.ai reveals. During its busiest week, March 2, foot traffic was up 10.3% year over year, suggesting that the retailer’s turnaround plan is starting to bear fruit.Target also saw more visits during this year’s Circle Days than it has for the past two years. Average daily visits during 2026’s event were 2.9% higher than those in 2024 and 5.9% higher than those in 2025. “Target’s early-2026 performance suggests its turnaround efforts are beginning to resonate, supported by investments in stores, staffing, and merchandising aimed at improving the in-store experience,” Placer.ai’s report said. “Encouraging traffic trends — including stronger performance during Circle Days despite already elevated baseline visits — point to renewed shopper engagement,” it continued. “If Target can sustain this momentum beyond promotional periods, it appears well-positioned for stabilization and modest growth in 2026.”Related: History of Target: Company timeline and factsA more shoppable storeTarget has been actively working to improve its in-store shopping experience, something that’s certainly helped drive foot traffic numbers. The retailer is “repositioning our assortment and our floor plans to bring newness to all 2,000 stores this year,” Fiddelke told investors on March’s call. More retail:Home Depot sees worrisome shift in consumer behaviorAldi shoppers get very good newsWalmart's Sam's Club is raising membership prices“In many ways, [our stores] are truly the heartbeat of our experience,” he continued. “Guests tell us they love the feeling of walking into a Target that's clean, welcoming, and easy to shop.”“For millions of people, even in a digitally led world, stores are the single most tangible expression of our brand, and for decades they have set Target apart,” Chief Merchandising Officer Cara Sylvester added. “We've heard clearly from our guests and from many of you that our in-store experience has been inconsistent. Too often we're cluttered, out of stock, or even transactional.”To that end, Target is allocating $1 billion for capital expenditures in 2026. A good portion of that money will go toward 130 full-store remodels and 30 new store openings, the largest store transformation of the last decade. “We are resetting our stores' operating model this spring, organizing around three clear principles,” Sylvester said. “We're scaling what works because when stores operate at a high level, that lifts everything up.”Related: Dollar General makes a big change that might upset customers