I’ve been a Target shopper for years, and after helping my daughter move to college, I made four trips to the store in a single day. Each visit showed clearer improvements in product selection and service, confirming the positive trends I’ve seen in the numbers.
Despite owning the stock for a few years and enduring a bumpy ride, I now see a genuine turnaround taking hold. Target, based in Minneapolis with over 2,000 stores and a strong brand, is entering the key holiday season with momentum. Shoppers continue to spend, but they are increasingly seeking value—exactly where Target’s current initiatives can pay off.
Key points: The new CEO unveiled a $6 billion investment plan and reshaped the leadership team. Target is allocating more capital to stores, and early results already show rising foot traffic and sales. Management is also boosting marketing spend and deploying AI to revitalize the brand and give shoppers more reasons to return.
Target had previously suffered from uneven execution and a shopping experience that fell short of its potential, weighing on the stock. Even after a strong rally this year, shares remain well below their 2021 peak. With fresh leadership, I believe Target is returning to the formula that once distinguished it from other big‑box rivals: blending value and convenience with products that feel a touch more stylish and interesting.
Why I’m buying: The new CEO, Michael Fiddelke, assumed the role in February after climbing the ranks from intern to CFO and then COO. His plan to invest roughly $6 billion this year includes store openings and remodels, supply‑chain upgrades, and additional payroll and training for front‑line staff. The leadership team has also been refreshed—a new COO, a new chief supply‑chain officer hired in May, and a new chief marketing and guest‑experience officer recently brought on board.
The store experience is improving where customers notice it most. Part of the $6 billion is earmarked for higher store payroll and training, shifting focus to the employees who stock shelves and keep stores running smoothly. This matters because Target’s challenges weren’t solely about merchandise; inconsistent stocking and staffing undermined the shopping experience. Comparable sales rose 3.8% last quarter while traffic increased 3.6%, indicating more visitors and higher spending per visit.
Target is renewing its brand investment. For years the company under‑invested in marketing, weakening its identity as a retailer known for convenience and interesting, design‑forward offerings. Now management is expanding brand marketing and sharpening its message around trend‑forward products, exclusive partnerships, good design, and affordable prices. The strategy is also being powered by technology: Target is investing in AI and personalization to help shoppers find relevant items, and early tools are already lifting digital conversion rates.
Why now? Profitability is on the upswing, although the latest quarter benefited from a sizable tariff refund. Even excluding that boost, margins are moving in the right direction. I expect Target to earn roughly $9 to $11 per share over the next 12‑18 months. The stock has gained more than 61% this year as investors recognize the turnaround, yet it remains about 40% below its 2021 high. If earnings keep improving, there is still room for further upside.
Bottom line: One of my favorite investment approaches is to find a strong brand that has fallen out of favor but where new management is executing the right moves. That scenario is playing out at Target. Decision‑making is improving, leadership is willing to take calculated risks, and the retailer is regaining its status as a destination. Even after the stock’s strong rally this year, I see additional upside ahead.