Target Corporation ( TGT ) has had its share of challenges over the past few years. Several controversies, including the boycott of its Pride collection and the rollback of its DEI (Diversity, Equity, and Inclusion) initiatives, significantly impacted overall sales.
In 2025, the retail giant has made several moves to win back customers, including various discounts and promotional offers. However, in its latest earnings report, comparable sales fell 2.5% year-over-year in the fourth quarter.
In addition, Target’s full-year 2025 net sales fell 1.7% to $104.8 billion, reflecting a 2.6% decline in comparable sales, according to an 8-K filing with the Securities and Exchange Commission (SEC).
Once a big company faces a massive customer backlash and boycott, it’s hard to recover, because its every move is then put under a magnifying glass. For example, the company also recently took heat for not taking a public stance against ICE crackdowns in Minneapolis.
I recently covered Target’s plan to be one of the first national retailers to carry only cereal made without certified artificial colors by the end of May 2026. However, even a move like this was not openly welcomed by some consumers, who questioned the political motivations behind the decision, or saw it as a hollow gesture that prioritized cultural trends over meaningful public health reform.
Despite the challenges of winning back customers, Target isn’t giving up. It’s planning a new turnaround, and it’s coming from new leadership.
Earlier this year, Target hired a new CEO with the goal of restoring its reputation, and it’s also making workforce changes to improve the customer experience. In a formal “first day” message from new CEO Michael Fedlak, who has been with the company for more than 20 years, he announced four new priorities.
Lead with business authority By persuasion.
Enhancing the guest experience By making every store visit and digital interaction easier, more inspiring and more welcoming.
Faster technology To eliminate friction, activate our teams and create more personalized, enjoyable experiences for guests.
Strengthening our team and communities By investing in our people, building future-ready skills and growing alongside the communities we serve. Source: Target
Recently, Fedlak shared details about his vision in an interview with The Associated Press cited by Fast Company. The CEO emphasized the importance of a “prove it” story, meaning he plans to prove to skeptics that his fresh set of eyes will prevent Target’s low sales.
He thinks his 20-year history with the company helps him understand what Target looks like at its best, while also helping him spot any mistakes.
A key part of his plan to win back consumer trust is restoring the creative culture that made Target famous.
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Fedlak reveals that Target’s design inspiration dried up during the pandemic as customers stopped traveling. He now encourages his teams to go back into the world (like European Christmas markets) to find unique ideas so Target doesn’t look like just another big box store.
Acknowledging that boycotts and political controversies “impacted sales” last year, he says that although there are no “easy buttons” to win back consumer confidence, the company plans to do so.
Target is investing $2 billion in AI, stores, and employees, unveiling four key changes under a “new chapter” of growth strategy. ·Lots of Photography/Shutterstock
In early March, Target announced a strategic plan to address declining sales. The company intends to spend $5 billion to improve its stores and open new ones.
Extensive store renovations: Launch of 30+ new stores; 130+ complete redesigns to make them less cluttered and more visual; Plans to launch Target Beauty Studio, a new division with premium brands and expert services.
Focusing on sorted categories: Adding high-end brands viz UPPAbaby and bugaboo; Resume board brand with shop-in-shops in 200 stores; Expanding the health offering and removing artificial colors from all cereals by May 2026.
Solving the guest experience: $1 billion investment in store salaries and training.
Fast delivery: expanding next-day delivery of household essentials to 20 more metro areas this spring; Using AI to create more personalized shopping experiences. Source: Target
“Target is not an everything store. It’s not what guests want from us,” CEO Michael Fedlak said at the company’s annual financial meeting in Minneapolis, as reported by Business Insider.
Recent retail data suggests that regaining customers’ trust and loyalty once they have returned is difficult, as consumers now prefer service and transparency above price.
Poor experience leads to fewer purchases: 71% of consumers say they are less likely to shop with a retailer again after a bad experience, up from 67% in 2024. And four out of five said they would share their negative experience with friends and family, which would likely increase the impact, according to the National Retail Federation’s 2025 data.
Bad experiences turn customers away: 52% of consumers Say they stopped using or buying from a brand because they had a bad experience with its products or services, while nearly a third (29%) stopped because of a poor customer experience, either online or in person, according to 2025 data from PwC Global.
Silent brand switch: 30% of consumers According to Qualtrics XM Institute, 2026, those who have a bad experience do not complain or give feedback, but will simply switch brands quietly.
Industry data suggests that winning back customer trust is challenging; in any case TD Cowen led by analysts Oliver Chen Appreciate some of the new efforts of the target.
“Repositioning business power in apparel and home (combined, about 30% mix) will be necessary to drive positive comps and improve on the still negative traffic trends. We remain rated Hold but are optimistic and bullish on ‘focused innovation,'” analysts said in an email to RetailDub.
However, not all analysts believe that a “creative culture” and recently announced efforts will be enough to compete with Amazon and Walmart and regain customer trust. Barclays Recently maintained low weight Ratings on the target, according to MarketBeat, analysts are expressing lingering doubts about a sustained sales recovery.
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This story was originally published by The Street on March 9, 2026, where it first appeared in the Retail section. Add TheStreet as a Favorite Source by clicking here.
