Target Unveils Multi-Year Plan, Commits Hundreds of Millions to Payroll, Training

Target told investors it will reinvest $1 billion into its P&L this year and add "hundreds of millions" for store payroll and training as part of a broader multi-year strategy to return the business to growth, senior executives said at the Financial Community Meeting in Minneapolis. CEO Michael Fiddelke led the presentation to the investment community and media about the chainwide push to refresh stores, expand fulfillment and accelerate technology investments.

Meeting remarks included: "Before I move on to our guidance, I wanna provide some context based on the work we’ve been doing to refine our strategy and how that work has shaped the investment we’re planning this year." The same presenter then laid out the $1 billion P&L reinvestment and its uses: "In support of the strategic decisions that Michael and Cara outlined earlier, and our goal to move our business back to sustainable growth, we’re planning to reinvest $1 billion into our P&L this year. This includes $hundreds of millions to support additional store labor and training, along with expenses related to a planned increase in new store openings, growth and remodel projects, and our most ambitious plan for in‑store merchandising transitions in more than a decade. In addition, we’re stepping up our spending on brand marketing and technology, including AI."

Executives also described a separate funding line: "We’re making a more than $2 billion incremental investment across the business this year, including an additional $1 billion in CapEx to support new stores and remodels and another $1 billion to elevate the guest experience." Company materials and remarks did not specify whether the $1 billion P&L reinvestment is included within or separate from the "more than $2 billion" incremental investment.

Operational changes tied to the spending are concrete and wide ranging. Stocktitan/PRNewswire summarized plans for refreshed floor plans and enhanced in‑store displays chainwide, new shop‑in‑shops and updated layouts, calling the initiative "more changes within all stores than any year in the last decade." The company said it will open more than 30 new stores in 2026 and pursue a long‑range plan to reach about 300 new stores by 2035, with remodeling activity ongoing; Nasdaq previously reported 20 new openings in 2025.

Technology and fulfillment are explicit pillars of the plan. Executives said they are "accelerating technology and AI to personalize shopping and speed operations," linking AI to modernizing inventory management, improving search and social experiences, and expanding next‑day brown box delivery. "We’re leveraging technology to support our company’s digital growth and enhance the in‑store experience," meeting remarks added, "Today, we’re using technology to keep momentum building in our digital business and simplify work for our store teams so they can spend more time serving our guests."

Target also outlined marketplace and media growth targets that feed the revenue agenda. The company plans to scale Target Plus third‑party sales from roughly $1 billion in 2024 to more than $5 billion by 2030, and to double Roundel, its in‑house media business, by 2030 after Roundel "drove over $2 billion in value last year." Assortment moves include adding brands such as Peloton, Daily Harvest and Honest Baby Clothing, launching over 45 new beauty brands and 2,000 new items, and expanding collaborations and partnerships across apparel and home.

Executives closed by pointing to culture and community metrics, noting team volunteerism reached 1 million hours last year for the 10th time. Meeting remarks thanked employees directly: "For all the team members tuning in today, thank you. Everything I’ve outlined today, the resilience, the progress, the boldness, is because of you, Team Target." The company said these investments aim to drive profitable multi‑channel sales growth through 2030 while improving the in‑store experience most visible to hourly teams and guests.