Target pilots store overhaul across 130 locations, boosts investment to $2 billion

Target’s store overhaul will hit the sales floor first, with updated layouts, bigger displays, more payroll and more training showing up in 130 pilot locations across 10 cities. For store teams, the revamp means more resets, more guest guidance and more pressure to keep service, merchandising and fulfillment moving at once.

The company said at a March 3 financial community meeting that it would make an incremental $2 billion investment in 2026, including more than $1 billion in additional capital expenditures and $1 billion in additional operating investments. Target said the year would bring more changes inside stores than any year in the last decade, with updated floor plans, enhanced in-store displays, added payroll, training and faster use of technology, including AI, to make shopping easier and more personalized.

Michael Fiddelke, Target’s chief executive, said the company is centering decisions on style, design and value as it tries to create a more delightful in-store experience over the long term. For employees, that translates into a heavier change-management load. New floor plans and displays mean fresh merchandising routines and more time spent helping guests find departments that may no longer look familiar. The company’s added payroll and training suggest it knows the revamp will require more labor on the floor, not just a new look.

Target tied the overhaul to a broader growth push. On March 5, it said it plans to open more than 30 new stores in 2026, including its 2,000th location in Fuquay-Varina, North Carolina, under a $5 billion capital investment plan for the year. The Fuquay-Varina store is 148,000 square feet and was presented as a model for the company’s future elevated guest experience, with an open, easily navigable layout and a food and beverage department that is 30% larger than the chain average.

That store also packs in the service mix Target wants to scale: Drive Up with 24 pickup lanes, Order Pickup, same-day delivery, next-day delivery in the Raleigh market, a CVS Pharmacy, a Starbucks Cafe and a Disney Shop at Target. Target said 92% of shoppers at its newest store format are highly satisfied with the overall experience, based on guest surveys. For store employees, the challenge is turning that promise into a repeatable day shift after day shift, with more tools, more technology and more accountability built into the job.