Target Corporation (TGT) has had a challenging last couple of years. Several controversies, including boycotts over its Pride collection and the rollback of its DEI (diversity, equity, and inclusion) initiatives, significantly impacted its overall sales.
In 2025, the retail giant made several moves to win back customers, including various discounts and promotional offers. However, its latest earnings report revealed a comparable sales decrease of 2.5% year over year in the fourth quarter.
Moreover, Target’s full-year 2025 net sales dropped 1.7% to $104.8 billion, reflecting a 2.6% decrease in comparable sales, according to its 8-K filing with the Securities and Exchange Commission (SEC).
Once a major company has faced massive customer backlash and boycotts, it’s hard to recover, as its every move is then put under a magnifying glass. For example, the company has also recently taken heat for not taking a public stand against ICE crackdowns in Minneapolis.
I recently covered Target’s plan to become, by the end of May 2026, one of the first national retailers to carry only cereals made without certified synthetic colors. However, even a move like this was not openly embraced by some consumers, who questioned the political motives behind the decision, or saw it as an empty gesture that prioritizes cultural trends over substantial public health reform.
Despite challenges to win back customers, Target is not giving up. It has a new transformation plan, and it is coming from new leadership.
Target CEO unveils new plan to win back customers
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 an official “day one” message from new CEO Michael Fiddelke, who has been with the company for more than 20 years, he declared four new priorities.
- Leading with merchandising authority by curating with conviction.
- Elevating the guest experience by making every store visit and digital interaction easier, more inspiring, and more welcoming.
- Accelerating technology to remove friction, enable our teams and create more personalized, joyful 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
More recently, Fiddelke shared details about his vision in an interview with the Associated Press cited by Fast Company. The CEO stressed the importance of the “prove it” story, meaning he plans to prove to skeptics that his fresh set of eyes will reverse Target’s slumping 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.
One important part of his plan to win back consumers’ trust is restoring the creative culture that made Target famous.
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Fiddelke reveals that Target’s design inspiration dried up during the pandemic because buyers stopped traveling. He is now pushing his teams to get back out into the world (like European Christmas markets) to find unique ideas so Target doesn’t just look like every other big-box store.
Acknowledging that boycotts and political controversies “impacted sales” last year, he says that although there’s no “easy button” to win back consumer trust, the company plans to do the work.
Sundry Photography/Shutterstock
Target invests $2 billion more in AI, stores, and staffing
Earlier in March, Target announced a strategic plan to fix declining sales. The company intends to spend $5 billion to improve its stores and open new ones.
Four key changes under Target’s “new chapter” of growth:
- Massive store overhaul: Launching 30+ new stores; 130+ full remodels to make them less cluttered and more visual; plans to launch Target Beauty Studio, a new department with premium brands and expert service.
- Focusing on curated categories: Adding high-end brands such as UPPAbaby and Bugaboo; relaunching the Threshold brand with shop-in-shop display in 200 stores; expanding wellness offering and removing synthetic colors from all cereal by May 2026.
- Fixing the guest experience: $1 billion investment in store payroll and training.
- Faster delivery: Expanding next-day delivery of household essentials to 20 more metro areas this spring; using AI to make more personalized shopping experiences.
Source: Target
“Target is not an everything store. That’s not what guests want from us,” CEO Michael Fiddelke said at the company’s annual financial meeting in Minneapolis, as reported by Business Insider.
How hard is it to win back consumers’ trust once broken?
Recent retail data suggest that gaining back customers’ trust and loyalty once they turned away is difficult, as shoppers now prefer service and transparency above price.
Consumer’s loyalty and trust data:
- Poor experience leads to less shopping: 71% of consumers say they are less likely to shop with a retailer again after a poor experience, up from 67% in 2024. And four out of five said they will share their negative experience with friends and family, potentially amplifying the impact, according to 2025 data from National Retail Federation.
- Bad experiences drive away customers: 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 due to poor customer experience, either online or in-person, according to 2025 data from PwC Global.
- Silent brand switch: 30% of consumers who have had a bad experience won’t complain or give feedback, but will simply switch brands silently, according to data from Qualtrics XM Institute, 2026.
Industry data suggests that winning back consumers’ trust is challenging; however, TD Cowen analysts led by Oliver Chen praised some of Target’s new efforts.
“Reinstating merchandising authority in apparel and home (together, about 30% of mix) will be essential to drive positive comps and improve still-negative traffic trends. We remain Hold-rated but are hopeful and excited for ‘focused newness,’” analysts said in an emailed note to Retail Dive.
However, not all analysts are convinced that a “creative culture” and recently announced efforts will be enough to compete with Amazon and Walmart and earn back shoppers’ trust. Barclays recently maintained an Underweight rating on Target, with analysts expressing lingering skepticism regarding a durable sales recovery, according to MarketBeat.
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