Target Plans $2 Billion Store Overhaul, Expanding Grocery Sections Across 130 Locations
Target is betting $2 billion on groceries to reverse a 1.7% sales drop, with 130 store remodels and a goal to double its food offerings in three years.
After a bruising 2025 that included consumer boycotts and a 1.7% sales decline, Target committed more than $2 billion to remodel 130 stores and open 30 new locations in 2026, with expanded grocery sections at the center of the turnaround.
The company announced the growth plan on March 3, shortly after bringing in a new CEO in early 2026. The investment, described as one of the retailer's largest store overhauls in years, is aimed at what Target calls delivering "a more consistent, elevated guest experience" while restoring steady growth against intensifying competition from Walmart and Amazon.
Grocery is the clear priority. Food and beverage sales already rose $308 million, or 1.3%, in the year ended January 31 compared to the prior year. Chief merchandising officer Cara Sylvester told Food Business News the company is "on track to double the amount of food and beverage items it carries in the next three years." On the ingredient side, Axios reported Target will require all cereals to be made without synthetic food dye by May.
The physical overhaul extends beyond the food aisles. Remodeled stores will feature a makeover of the beauty section to spotlight luxury brands, an expansion of health and wellness products, and redesigned departments dedicated to pop culture and sports merchandise. Target is upgrading 130 existing locations and adding 30 new ones, with some changes rolling out immediately and others phased in as remodels and new stores open across 2026.
The 2025 backdrop shapes how skeptically some workers are reading the announcement. The company's sales dropped 1.7% that year, according to its own 8-K filing, after consumer boycotts erupted over the rollback of diversity, equity and inclusion programs. Online reaction to the overhaul plan reflected that skepticism. "So in other words, those of us who have been here for a decade or more will get an extra two cents on their raise and some stale donuts in the break room," one Reddit user wrote, as quoted by Newsweek. Others questioned whether frontline workers would see any meaningful benefit from the investment.
Target has not specified which 130 stores are scheduled for remodeling or provided a full timeline for individual locations. The transformation is expected to continue rolling out through the remainder of 2026, with grocery expansion serving as the most visible signal of where new leadership is placing its bets.
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