Target is making big changes to win back customers. Here's what shoppers can expect to see

Target CEO Michael Fiddelke announced sweeping merchandising changes at the company's Minneapolis headquarters on Tuesday, February 11, 2026, as part of an ambitious turnaround strategy to win back customers after four consecutive quarters of declining traffic. The big-box retailer detailed plans to overhaul key categories including groceries, beauty products, home goods, and what they're now calling 'Fun101' (formerly hardlines), as it seeks to regain its reputation for stylish and unique items. Fiddelke, a Target veteran who assumed the top role on February 1, emphasized that these changes represent 'more change to what we sell and how we sell it than you've seen in a decade,' with many tweaks customers 'will see and feel right away.' The announcement came during an investor meeting where Target shared its holiday-quarter results and outlined its strategy for the current fiscal year, which expects net sales to rise about 2% compared to the previous year. Among the most significant changes is Target's expansion of its grocery department, which remains the top traffic driver for the retailer. The company plans to double the square footage for fresh foods like fruits, vegetables and meats in over half of its remodeled stores, while also ramping up new items by up to 50% in key categories like snacks and dry groceries. In beauty, Target will replace its Ulta Beauty partnership with its own 'Beauty Studio' in over 600 stores and online this fall, featuring prestige brands, enhanced lighting, and a dedicated loyalty program. The retailer is also overhauling its hardlines category, now rebranded as 'Fun101,' with a focus on play, pop culture, sports, and trendy gadgets rather than traditional electronics like TVs and laptops where it's harder to differentiate from competitors. For its struggling home category, which saw a nearly 7% sales decline year over year, Target is working to regain its position as a destination for stylish yet affordable home decor. The merchandising makeover comes as Target faces significant challenges, with revenue falling slightly in fiscal 2025 and stagnant for four consecutive years. Despite these difficulties, Wall Street reacted positively to the turnaround plans, with Target's stock climbing more than 6% on Tuesday and continuing to trade higher on Wednesday. The success of these merchandise changes will be crucial in determining whether Target meets its sales and earnings outlook for the current fiscal year and can reverse its declining customer traffic. By focusing on differentiation and unique offerings across key categories, Target aims to remind shoppers why they once considered the retailer a destination for stylish merchandise while addressing specific competitive pressures in each department.