Analysis

Target to remodel 12 Texas stores with grocery pickup upgrades

Target is putting 12 Texas stores through remodels that will push more work into grocery pickup, cold-chain handling and Drive Up as Texas becomes the company’s test market.

Lauren Xu··2 min read
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Target to remodel 12 Texas stores with grocery pickup upgrades
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The biggest day-to-day change for Target teams in Texas is not the new paint or fixtures. It is the work tied to faster grocery pickup, more temperature-sensitive items and a busier backroom as 12 stores get remodeled in the state, more than in any other market.

Target’s 2026 plans call for drive-up lanes for grocery pickup, grab-and-go meals and state-themed displays, with stores in San Antonio, Dallas-Fort Worth and West Texas among those getting updated. The scale matters because these remodels are landing on top of a broader push to make stores do more of the company’s digital work, not just look newer.

Target said in March that it planned to invest about $5 billion in 2026 on store remodels and new stores, including an incremental $2 billion in spending split between more than $1 billion in additional capital expenditures and $1 billion in additional operating investments. The company also said it expected to open more than 30 new stores this year, with its 2,000th location set for Fuquay-Varina, North Carolina. That puts the Texas projects inside a much larger operating reset, not a one-off refresh.

For workers on the floor, the real pressure point is fulfillment. Target said its same-day fulfillment suite already accounts for two-thirds of digital sales, and its stores handle the majority of digitally originated orders through Order Pickup, Drive Up and Shipt. The company’s fact sheet says same-day delivery reaches 80% of the U.S. population and two-day shipping reaches 99%, which makes store-level execution central to the business. In practical terms, remodels that expand Drive Up and grocery pickup can mean more orders, tighter timing and more handoffs between inbound teams, guest service and leaders tracking labor by the hour.

Target has also been explicit that food is doing more than filling shelf space. James Lee, the company’s chief financial officer, said, “We’re very comfortable leaning into food because we know it drives traffic.” That matters in Texas, where local reporting said the remodel list stretches from San Antonio and San Marcos to McAllen, El Paso, Galveston, Houston and Temple, with Dallas-Fort Worth and West Texas also in the mix.

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Some of the work is already concrete. Community Impact reported a $15 million remodel at the Target at 700 Barnes Drive in San Marcos starting in February 2026, while mySA reported a $4.1 million remodel for a South Side San Antonio Target and said the San Marcos project was expected to wrap by mid-July. Industry reporting has said Target generally expects a full remodel every 10 to 15 years, which suggests the Texas stores are part of a longer-cycle operating overhaul.

For team members, that means more cross-training, more freight discipline around cold items and a faster cadence at the front end when Drive Up orders spike. Texas is starting to look like the place where Target is testing how far a store can be pushed as a fulfillment engine, a food destination and a localized shopping experience at the same time.

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