New Target CEO's plan to turnaround the company

Stock is down 31% over the last year

Target cut it's fiscal year guidance after sales declined for a fourth straight quarter.

Incoming CEO Michael Fiddelke has his work cut out for him as he attempts to turn the struggling business around

The weak sales trends could continue into the final stretch of the year. Fourth-quarter sales will decline by a low-single digit percentage, Target said. “Choppy” consumer demand trends—exacerbated by concerns about inflation, the federal government shutdown, and a weakening labor market—could carry over from the third quarter.

Target laid off 2,000 employees in late October in a bid to make the company more efficient, unveiled a new AI-powered gift finder to help customers with holiday shopping, and announced it would be cutting prices on 3,000 daily essentials.

So... what's the new CEOs turnaround plan?

Luckily, we don't have to guess.

The new CEO unveiled more of his vision for the company, saying he is focused on three priorities:

• Solidify Target’s merchandising authority,

• elevate the guest experience in stores and online, and

• accelerate the use of technology across the business.

Wow. Did ChatGPT write those priorities? Thanks but no thanks.

The company did announce its plan to increase CAPEX in 2026 to $5B, up 25% for 2025.

Currently, Target fulfills most of its online orders at stores... a tactic that some analysts argue has contributed to in-store inventory shortages, long checkout lines, and messier stores.

Executives said they are planning to shift orders away from highly trafficked stores in key markets, rerouting them instead to stores better equipped to handle online orders.

Target also announced it was teaming up with OpenAI’s ChatGPT to allow chatbot users to shop for its items directly through its platform, joining the ranks of other early adopters such as Walmart, Shopify, and Etsy.

The function launches next week in beta mode, Target said, and will allow users to purchase multiple items in a single transaction, shop fresh food products, and select their preferred shipping options.

Still, all of this is boring and wont turnaround the company in my opinion.