Target plans to increase its capital investment plans by more than $1 billion in 2026 — for a total of approximately $5 billion — to support, in part, supply chain investments including transportation and distribution capabilities. Here, a team member unloads inbound items from a trailer.

Target Corp., a major retailer that serves guests at nearly 2,000 stores and online, plans to invest an incremental $2 billion in 2026, including more than $1 billion in additional capital expenditures and $1 billion in additional operating and related supply chain investments, all to accelerate growth. Target, which carries a significant amount of food items in its offerings, recently announced plans to include transforming in-store floor plans and displays, increasing payroll and training to elevate the guest experience, strengthening and evolving the assortment in key categories, and accelerating technology — including artificial intelligence (AI) — to make shopping easier and more personalized.

"This new chapter of growth at Target is defined by clear choices and rooted in a deeper understanding of our unique lane in retail, the guests we serve and the areas where we're distinctly positioned to win," says Michael Fiddelke, Target’s Chief Executive Officer. "This work is underway, and by putting style, design and value at the center of every decision, we're making big changes to lead with a trend-forward assortment, elevate the guest experience, accelerate with technology and equip our teams to deliver the most delightful experience in retail, for today and over the long term."

Target's Strategic Priorities For Business

At the center of this work are four growth priorities that will guide Target's decisions and investments in 2026 and beyond:

• Lead with merchandising authority by setting trends with differentiated, culturally relevant assortments that win in style, design and value.
• Elevate the guest experience by investing in digital discovery and the in-store experience while strengthening loyalty and engagement.
• Accelerate technology to help teams move faster and create more personalized, joyful experiences for guests.
• Strengthen team and communities by investing in training and career growth for teams and building on Target's long-standing commitment to communities.

Investing to Accelerate Growth

Target is planning to make an incremental $1 billion operating investment in 2026 to deliver a more consistent, elevated experience for guests. This includes:

• Hundreds of millions of dollars in additional store payroll and training in 2026. The investment is designed to drive greater consistency and help teams deliver an in-store experience centered on being delightful, inspiring and easy.
• Increasing spend on brand marketing and new technology, including AI.

Target will enhance speed and efficiency across its leading suite of same-day fulfillment services, which already account for two-thirds of digital sales. Target also will expand the reach of its next-day brown box delivery capabilities with the addition of 20 new metro areas in the spring of 2026. Here, a team member sorts items bound for direct to guest fulfillment. 

Target also plans to increase its capital investment plans by more than $1 billion in 2026 — for a total of approximately $5 billion — to support new stores and ongoing remodels, and supply chain investments. The retailer expects to open more than 30 new stores this year as part of its path to 300 new stores by 2035, while investing in more than 130 planned full-store remodels.

Elevating Key Categories and Scaling Differentiated Offerings

With a clear view of the value Target can deliver for busy families — which it defines as digitally savvy, style-focused and value-conscious consumers — the retailer is making more intentional choices and investments in key product areas such as home, beauty, and women’s style, where its differentiation in style, design, value and experience will accelerate growth.

In 2026, Target will focus on food and beverage, as well as related health categories:

• Further infuse style and design throughout the grocery experience while allocating more space for this category as new stores are built and locations are remodeled.
• Increase the amount of newness across the assortment by nearly 50% and lead with innovation across owned, emerging and national brands. In May, Target plans to become one of the first national retailers to offer families a cereal assortment made without certified synthetic colors.
• Strengthen its position as a destination for everyday well-being by building on the 30% wellness assortment expansion announced in January. Target says they plan to add thousands of new items and even more exclusives, as well as increase vitamin and nutrition offerings by about 20% chainwide in April.

Target is investing an incremental $2 billion in 2026, including more than $1 billion in additional capital expenditures and $1 billion in additional operating and related supply chain investments, all to accelerate growth. It’s also making significant operating investments that will include enhanced in-store displays across the chain to spotlight top items, such as seasonal snack favorites. 

Related Articles:

• Target Expands Next-Day Delivery Across the U.S.
• Playbook: Effective Supply Chain Talent Strategy
• The Great Digital Transformation
• Last-Mile Delivery: What It Means for Food Retailers
• Supply Chain Transparency: Leveraging Technology to Achieve the Perfect Shipment

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