Target's Promotions Fail to Lure Shoppers as Sales Declines Persist

Target faces declining sales and trust issues, partly from boycotts and controversial decisions. The discounts haven't helped much. Target announced a new three-day sale called Target Circle Deal Days, set for March 25–27, 2026, specifically for members of its loyalty program, focusing on deep discounts for spring essentials. But the promotion arrives against a backdrop of stubborn financial erosion that no single event has yet been able to reverse.

Target's latest earnings report for Q4 2025 showed a year-over-year 2.5% decline in comparable sales, and the retailer's full-year 2025 net sales dropped 1.7% to $104.8 billion, reflecting a 2.6% decrease in comparable sales. The latest figure marks 11 quarters out of the past 13 that Target has posted either declines or flattish growth for this measure.

Despite its emphasis on innovation, Target appears to be leaning once again on old playbooks. Its latest initiative closely mirrors strategies it already tried last year in an effort to reverse declining sales and traffic, which have yet to deliver consistent results. Analysts at investment firm Bernstein put it bluntly: "[Target] is unlikely to achieve both and, increasingly, neither," referring to the twin pressures of driving sales growth while protecting margins under newly implemented U.S. tariffs on foreign goods.

Target has been facing increased competition from rivals like Walmart and Amazon, while shifting consumer habits and economic pressures have slowed sales growth. One reason Walmart has gained a competitive edge on Target is that it sells necessities at lower costs, whereas Target has become known for selling stylish luxuries at a lower cost. That positioning is increasingly difficult to sustain when shoppers are cutting back.

According to Nielsen IQ's 2026 Consumer Outlook, 95% of consumers say brand trust is now the most critical factor when choosing where to shop, and Target has a long road ahead to win back that trust. The trust deficit runs deeper than pricing: even before immigration-related clashes, Target had been facing protests and boycotts over its decision to roll back its diversity, equity and inclusion initiatives, which critics believed was a betrayal of its philanthropic commitment to fighting racial disparities.

Target's performance underscores the challenges faced by new CEO Michael Fiddelke, a 20-year company veteran, who succeeded longtime CEO Brian Cornell. Fiddelke framed his tenure as a turning point: "This is a new chapter, and it's all about growth. We'll do so by playing our own game and making big changes to delight our guests."

Backing that vision is a $5 billion capital expenditure plan for 2026, up more than a billion dollars from last year, with most of the investment going into improving stores, including plans to open 30 new stores and remodel 130. Analysts warn, however, that discounts alone are insufficient; rebuilding trust and enhancing the in-store experience are essential.

For team members on the floor, the stakes are immediate. Every Target Circle Deal Days event is also a test of whether the store can deliver on the experience side of the equation. Target said sales and customer traffic accelerated in the final two months of Q4, with growth in food and beverage, beauty, and toys, suggesting there are categories that resonate when execution is sharp. Whether that momentum carries into spring will be the clearest signal yet of whether Fiddelke's turnaround has traction beyond the boardroom.