Target has a new strategy to attract customers

I used to love going into Target and browsing the aisles for cool finds. Back then, my local Target store was full of shelves and well-stocked inventory that was easy to navigate.

These days, shopping at Target is more of a chore than anything else. In fact, the only reason I’ll set foot in Target now is to buy clothes for my kids or pick up an item I know I can’t find anywhere else. Gone are the days of browsing Target’s inventory for fun.

And this is not just my experience. Many people who once adored Target are now, in a word, haters.

Over the past year, Target has been losing customers for a variety of reasons, from lackluster inventory to disorganization and general economic stress. The company’s DEI pushback certainly didn’t help.

As Peggy Stover, professor of marketing at the University of Iowa, said Business InsiderTarget “attracted a very different demographic: more educated, younger, more self-aware and aware of the issues going on in their community.” So when the company pulled back on its DEI initiatives, consumers didn’t take the news lightly.

Also, consumers at all levels are struggling right now and tightening their belts.

Inflation grew by 2.7% annually in December, according to the Consumer price index. And 49% of Americans believe their financial situation will get worse by 2025, according to a recent Credit Karma survey

At a time when money is tight, it takes a lot to win over consumers. And Target has been sorely lacking in this regard.

Investors in Target stock have a lot to worry about. During the third quarter of 2025, objective reported net sales of $25.3 billion, down 1.5% from a year earlier, and comparable store sales fell 3.8%.

The operating profit was also 18.9% lower than the previous year.

“Target has faced increasing competition from large retailers and experienced a leadership transition. This has pressured the company’s stock.” Yahoo Finance reported in November.

But the reality is that if Target doesn’t do its job, it will lose more customers.

Target may not be able to control economic and broad conditions inflation. But it can certainly try to be strategic at a time when foot traffic is down.

Data from Placer.ai showed that foot traffic at Target stores declined 2.7% in the third quarter of 2025, compared to a year earlier.

Current CEO Michael Fiddelke vowed to do better after the company’s disappointing earnings.

“We continue to focus on the important work of delivering on our three key priorities: consolidating our merchandising authority, elevating the shopping experience and further leveraging the power of technology to move forward at greater pace and consistency, all in support of a return to sustainable growth,” he said in a press release.

Earlier this year, Target plans revealed to open seven new stores, five of which are expected to be larger than the chain’s average of 125,000 square feet.

But new store openings don’t just offer more in-person shopping opportunities. For Target, they also provide an opportunity to improve a key factor: delivery speed.

“Our stores fulfill 95% of our digital orders, including same-day delivery service with Target Circle 360, which currently reaches 80% of the US population,” Target said in its announcement.

More retail:

This strategy allows Target to use real-time signals, such as inventory and staffing levels, to decide from where incoming online orders should be fulfilled, optimizing both cost and speed.

And at a time when many customers aren’t too keen on the in-person shopping experience, improving the digital experience could be key to getting back into shoppers’ good graces.

Target isn’t the only company that can use its store network for faster order fulfillment times.

Walmart says more than half of its online orders are fulfilled directly from local stores, it said creativity.
Amazon is turning some Whole Foods Market locations into automated micro-fulfillment centers, Center for technological innovation in retail informed
Dick’s Sporting goods fulfills 80% of online orders on store shelves, Retail Brew noted

However, if it takes steps to reconcile its policy, organize its stores and get orders out quickly, Target is in a unique position to tap into consumer nostalgia and regain shopper confidence.

The company may be faltering on the first two. But if it continues to be successful with the latter, it could open the door to bigger sales and much better numbers in 2026.

Maurie Backman owns Target stock.

This story was originally published by The Street on January 31, 2026, where it first appeared in the Retail sale section Add TheStreet as a Preferred Source by clicking here.

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